Two-wheeler sales in India are expected to grow around 6-8 per cent this fiscal and could reach the peak level of 2018-19 either in the fourth quarter or the beginning of next financial year, a top official of Bajaj Auto said on Tuesday.
The rising commodity prices, specially natural rubber, have forced the company to increase prices in beginning of this month.
“The market sentiment is quite positive in both rural and urban areas. Our expectation is that the two-wheeler market should grow around 6-8 per cent this year,” Bajaj Auto Executive Director Rakesh Sharma told reporters in an earnings conference.
When asked by when the industry could touch the peak sales achieved in 2018-19, he said, “If not Q4 of this year, by Q1 of next year we should be able to breach the watermark of FY19.”
In 2018-19, domestic two-wheeler sales were at 2.12 crore units.
In FY24, domestic two-wheeler sales were at 1.8 crore units, according to Society of Indian Automobile Manufacturers data.
One of the key factors driving growth of two-wheeler sales is the bounce back of retail financing, he said.
“Things have been on an upswing in retail finance with 75 per cent of two-wheeler purchases are getting financed today as compared to 65 per cent around the same time last year,” he added.
When asked about impact of rising commodity prices, Sharma said, “We have taken price hikes on July 1 in both domestic and internal markets. The impact of this is around 2-3 per cent.”
Currently it is at a manageable level, he added.
