Two Wheelers lag as auto sales surpass pre-Covid peak - Alisha Sachdev
The automobile industry witnessed a strong start to 2023 with retail sales across segments, including passenger and commercial vehicles, and three-wheelers, surpassing the 2020 pre-pandemic levels in January.
However, declining income of rural households continued to impact sentiments of two-wheeler buyers, resulting in 13% lower sales during January from a year ago, vehicle registration data compiled by Federation of Automobile Dealers’ Association (Fada) showed. Vehicle registration was up 14% in the month, with all segments rising year-on-year. Registrations of two- and three-wheelers, tractors, passenger and commercial vehicles grew 10%, 59%, 22%, 8% and 16%, respectively.
For two-wheelers, decline in spending on Mahatma Gandhi National Rural Employment Guarantee Scheme in the budget for FY24 and a lower rate of income tax may provide mixed demand cue to rural and urban markets. Two-wheeler exports fell amid global recessionary fears and unfavourable currency movements impacting demand.
With improving semiconductor supply, automobile dealers expect waiting periods for passenger vehicles to shorten as inventories rise.
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Alisha Sachdev, Livemint, 7 February, 2023, https://www.livemint.com/news/india/auto-sales-surpass-pre-covid-peak-2ws-lag-11675705458354.html
Tagged with: Rural Spending Purchasing Power Auto Sales NREGA Two Wheeler sales Automobiles Commercial Vehicles Passenger Vehicles Indian Economy