Key Highlights
Stocking up trend in anticipation of upcoming festive season demand drives domestic two-wheeler sales volumes during August 2016
- Stocking up of inventory by dealers remains a regular phenomenon one to two months prior to festive season, however, this year is witnessing dual impact of pay commission pay outs coinciding with festive season build up
- Trend of stocking up of vehicles is exhibited by both motorcycle and scooter segments, though less pronounced in the latter
- Festive season sales also expected to be buoyed by slew of new model/variant launches scheduled by OEMs during the period
Market participants like two-wheeler dealers, financiers and OEMs gear up for a strong festive season
- Key two-wheeler OEMs as well as financiers remain optimistic about the upcoming festive season, though higher cash purchases also anticipated especially in entry segment two wheelers
- Two-wheeler dealers confirm that stocking-up of inventory for the festive season has commenced and various promotional schemes targeted at specific customer segments have been launched by some OEMs
Conclusion
- ICRA expects 10-12% growth for two wheelers for the current fiscal with significant contribution of sales during festive season
- Besides pay revisions from implementation of recommendations of Seventh Pay Commission and One Rank One Pension, benefits from a favourable monsoon during the current year and expected healthy kharif output supporting rural cash flows are expected to be key factors leading the growth.
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