India's two-wheeler sales likely to fall 1-4% YoY in FY22: ICRA
IANS 22 November 2021
India's two-wheeler sales are expected to contract by 1-4 per cent year-on-year (YoY) in FY22 due to weak festive season performance, ICRA said on Monday.
 
Accordingly, the rating agency cited that the relentless increase in prices of two-wheelers coupled with record-high petrol rates kept consumers away from dealerships. "The entry-segment (75-110cc), which dominates 2W (two-wheeler) sales in India, has remained subdued this year, reflecting extensive (and extended) impact of the second wave of the pandemic. The lacklustre festive season performance also highlighted continued wariness among the low-income population regarding big-ticket purchases," said Rohan Kanwar Gupta, Vice President and Sector Head, Corporate Ratings, ICRA.
 
"On the financial front, given the high operating leverage of the industry, subdued demand and elevated raw material costs are expected to keep the operating margins constrained for the two-wheeler OEMs (original equipment manufacturers) in the current fiscal," Gupta said. Besides, the agency said rural offtake has lagged urban, possibly due to moderated agri-sentiments caused by uneven monsoons and delayed harvesting across regions.
 
Furthermore, for the urban markets, the agency's report said that the delay in reopening of schools and colleges, weak income sentiments due to job losses or salary cuts and extended work-from-home policies by corporates, have impacted its sales. Additionally, it claimed that finance companies have remained cautious because of an increase in delinquency levels. India's domestic two-wheeler sales for the first seven months of FY22 were flattish at 8.05 million on a YoY basis, despite a "severely contracted base", it added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
Wankhede plea: Bombay HC refuses to 'gag' or 'disbelieve' Nawab Malik
IANS 22 November 2021
In a significant observation, the Bombay High Court said on Monday that the allegations levelled by Maharashtra minister Nawab Malik against Narcotics Control Bureau (NCB) Zonal Director Sameer Wankhede and his family cannot be...
Consumption Demand Making Strong Comeback: RBI Governor
IANS 17 November 2021
Reserve Bank of India governor, Shaktikanta Das, on Tuesday said that consumption demand triggered by the festive season is making a strong comeback.
 
Speaking at the eighth SBI Banking & Economics Conclave, he said: "There...
People May Have Been Holding Almost Rs3.3 Lakh Crore in Cash: SBI
Moneylife Digital Team 15 November 2021
Currency in circulation (CIC) has remained constant during Diwali week in 2021 even with record purchases. As per estimates by the State Bank of India (SBI), because of the COVID-19 pandemic, people may have been holding as much as...
India's October Wholesale Price Inflation Rises to over 12%
IANS 15 November 2021
Higher prices of primary goods along with food articles and fuel cost stiffened India's October 2021 wholesale inflation on a sequential and year-on-year (y-o-y) basis.
 
Accordingly, the annual rate of inflation, based on...
Free Helpline
Legal Credit
Feedback