July 9, 2024
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Two-Wheeler Sector Rides High with 9% Growth

In FY23, the two-wheeler industry recorded sales of 19.51 million units, an 8 per cent growth compared to the previous fiscal year’s 18.01 million units…reports Asian Lite News

Two-wheeler industry is expected to sustain a steady volume growth rate of around 7 to 9 per cent in FY25, considering both domestic and export markets, a new report said on Monday.

The growth in FY25 is expected to be driven by higher electric vehicle (EV) sales supported by the government’s Electric Mobility Promotion Scheme (EMPS) 2024, according to the knowledge-based analytical group CareEdge Ratings.

“Post-covid, sales volume of two-wheelers had consistently declined during FY20, FY21 & FY22 before starting to recover from FY23, with sales momentum continuing in FY24 as well,” said Hardik Shah, Director at CareEdge Ratings.

In FY23, the two-wheeler industry recorded sales of 19.51 million units, an 8 per cent growth compared to the previous fiscal year’s 18.01 million units.

In FY24, the industry continued its upward trajectory, achieving 9.8 per cent growth with a total sales volume of 21.43 million units.

However, this was short of the peak sales volume recorded in FY19 when annual sales volume had reached 24.46 million units, according to the report.

During FY24, the domestic two-wheeler industry witnessed a total sales volume of 17.97 million units, reflecting a growth rate of 13 per cent, while the export volume experienced a decline of 5 per cent though recovered from FY23.

The overall volume growth in FY23 and FY24 was supported by the increasing demand for EVs.

In FY23, EV sales reached about 0.73 million units, accounting for 4.54 per cent of total two-wheeler sales, reflecting a remarkable year-on-year growth of 188 per cent. Continuing the positive trend, EV sales grew by around 30 per cent in FY24 surpassing volume of 0.94 million units.

Segment-wise, motorcycles have dominated the market, contributing to the majority of the two-wheeler sales — while sales volumes of motorcycles grew by 8 per cent in FY24 that of scooters grew by 13 per cent during the year, the report mentioned.

This segment-wise growth trend is expected to continue in FY25.

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