TVS Motor Company Director and Chief Executive Officer KN Radhakrishnan projects double-digit growth in two-wheeler industry volumes during this year's festival season on the back of upbeat rural market demand.
Radhakrishnan expects the growth to be more than 12.5% and it is based on the VAHAAN data. Last year also the industry grew in double digits during the season. TVS Motor's performance during the period is expected to outpace the industry.
“The industry momentum is very good. This Puja and Diwali season is again going to be great. Currently, we are running around 12.5% kind of growth, as per the VAHAN data...I am optimistic that this season is going to be much better than 12.5% growth,” he told reporters today.
Festival season in India generally starts with Ganesh Chaturthi or Onam in Kerala towards the August end or September beginning, and extends till Bhai Dooj after Diwali in November across the majority of the states.
This period is of great significance to automakers as consumer spending is high during this time due to cultural significance. The volumes generated in this period account for a significant part of their annual sales.
Radhakrishnan noted that rural sales have been a major growth driver for the two-wheeler industry with the sentiments remaining positive. The growth from rural areas has been outpacing the urban areas.
"VAHAN data shows that the industry grew 13.5% in the April-June period. Growth in the rural is around 14.5%, while urban is only 12%," he said, adding the rural proportion of two-wheelers is becoming better.
In 2023-24, two-wheeler retail sales grew around 9% on year to 17.52 million units while domestic wholesales rose 13% to 18 million units. Two-wheeler is the only major segment expected to grow robustly this year as the outlook on passenger vehicle and commercial vehicle segments is subdued.
Read more: India's two-wheeler market to hit new peak by FY25, says Bajaj Auto’s Rakesh Sharma
Read more: 2W volume growth in FY25 seen at 10-12%, PV sales likely to grow 6-7%: Prabhudas Lilladher