Domestic two-wheeler sales dip 21% in Jan; recovery likely in coming months

The domestic two-wheeler sales witnessed 21 percent year-on-year decline in January, even as the segment registered a 14 percent sequential growth in domestic wholesale volumes, according to credit ratings agency ICRA. The numbers are based on the data released by six major original equipment manufacturers (OEMs), ICRA said in a statement on Wednesday.

The low year-on-year sales volume in January highlights the adverse impact of price hikes, fuel inflation, and Omicron-related concerns on consumer sentiments, said Rohan Kanwar Gupta, Vice President and Sector Head - Corporate Ratings, ICRA Limited. Noting that the supply chain issues in the production of premium motorcycles also persisted, he said, the reinstatement of localised restrictions, to contain the third wave of the pandemic, constrained retail sales and led to an 11 percent sequential (14 percent year-on-year) fall in volumes, to 10.2 lakh units.

Nonetheless, the industry is cautiously optimistic about recovery in the coming months, with easing supply chain constraints and spillover impact from positive announcements on infrastructure spends and agri-initiatives in the Union Budget, Gupta stated.