Key highlights:

  • Domestic industry volume CAGR at 5.5% over FY12-17
  • Deceleration in growth is due to the high household penetration level currently
  • Nationally two-wheeler household penetration stood at about 42% in FY17

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The Indian two-wheeler industry should prepare for growth shock as it is expected to structurally decelerate to mid-single digits with the beginning of the maturity phase of the market. The domestic industry volume compound annual growth rate (CAGR) at 5.5% over FY12-17 is significantly lower than 12% over FY02-12, according to a SBICap Securities report.

The reason the two-wheeler industry will see a deceleration in growth is due to the high household penetration level currently.

Two-wheeler sales recovery seen in May with several firms posting double-digit growth

  • Spike in petrol, diesel price fail to arrest car, two-wheeler sales
  • Majority of car companies post good growth in sales May