India's two-wheeler market, which has been gradually recovering lost ground since 2018-19, is projected to surpass earlier records and achieve a new peak by the next financial year, according to Bajaj Auto Executive Director Rakesh Sharma.
After hitting record volumes of 2.12 crore units in 2018-19, the domestic two-wheeler market witnessed its volumes hit rock bottom in 2021-22 amid the pandemic and cost inflation. Though the volumes have been recovering in the past two years, it is yet to breach the record set in 2018-19.
However, better disposable income, infrastructure, recovery from pandemic worries, favourable weather conditions, and e-commerce activity have resulted in robust sales for the two-wheeler segment. In 2023-24, the domestic two-wheeler industry rose around 13% to 1.80 crore units.
Bajaj Auto has forecasted a growth of up to 8% on the top of this in the current financial year. Sharma said there is optimism in the industry with consumer sentiments being quite positive, in both rural and urban areas. “If not by the final quarter of this year, I think in the first quarter of next year, we should breach the watermark of 2018-19,” Sharma told reporters in a post-earnings call on Tuesday.
He also noted that retail financing has been an increasing trend in the last four to five quarters, further augmenting sales. Now, about 75% of two-wheelers are getting financed, up from around 65 % in the previous year.
As per the SIAM data released last week, India’s two-wheeler sales during the first quarter of this financial year jumped around 20% on year to 49.9 lakh units. The growth in this financial year could be higher in the 125 cc + segment with entry-level motorcycles remaining under pressure.