Growth in two-wheeler sales signifies the revival of rural India and it is also important to note that since last festivities, the industry is seeing a consistent growth in the two-wheeler market, even though the sales have declined on a month-on-month (m-o-m) basis, auto industry body Federation of Automobile Dealers Associations (FADA) said on Tuesday.

The two-wheeler retail sales declined by around seven per cent m-o-m to 15,34,856 units in May, compared with 16,43,510 in April, as per the monthly data shared by FADA. However, the retail sales grew by 2.48 per cent on year-on-year (y-o-y) basis from 14,97,778 units in May 2023.

“In April, we had this Navratra and wedding season going on which was not there much in the month of May, so we cannot expect the quantum of retail that we saw in month of April to happen in the month of May. Yes, the numbers would definitely be low, but what is important is it has grown on a y-o-y basis. What is also important is since last festivities we have been seeing a consistent growth in the two-wheeler market and two-wheeler market growth signifies the revival of rural India,” Manish Raj Singhania, President, FADA told businessline.

He said dealers had been also struggling and were not able to generate much sales, but since six-eight months it has been a good sign and with the advent of a good monsoon and good crop, the industry was positive that in the current financial year the two-wheeler industry would grow with double digits.

Double-digit growth

“The two-wheeler industry will do pretty well, and that’s the only segment we can expect a double digit growth this financial year,” Singhania added.

According to the FADA’s recent report, market leader Hero MotoCorp’s retail sales declined by 16 per cent y-o-y to 4,45,838 units in May against 5,31,037 units in May 2023.

‘Pulsar’ maker Bajaj Auto’s domestic sales also declined by six per cent y-o-y to 1,75,179 units last month compared with 1,86,571 units in the corresponding month last year.

However, country’s number one scooter maker Honda Motorcycle & Scooter India reported a growth of more than 44 per cent y-o-y in its domestic sales to 3,90,924 units in May compared with 2,70,305 units in same month last year.

TVS Motor Company also reported a growth of four per cent y-o-y to 2,63,293 units in May against 2,53,004 units in May 2023.

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