Exports, Pre-festive Season to Pick up Two-wheeler Sales in Sept

New Delhi, Aug 3 (KNN) India’s two-wheeler manufacturers will see a growth in wholesale numbers from September as exports pick up and domestic demand increases due to upcoming festival season, as per analysts. 

Bajaj Auto and Hero MotoCorp, the two-wheeler makers reported dismal sales volumes for July.

“The incessant rains and the floods caused crop damage in several states, and also resulted in a sharp decline in customer footfall at dealerships,” Hero MotoCorp said on Tuesday.

Motilal Oswal estimated that two-wheeler sales declined around 6% in July, year-on-year.

However, analysts expect domestic demand for two-wheelers to improve on the back of new product launches and inventory build-up in preparation for the festival season that begins in October.

While there is some sales weakness expected in August, the festival demand effect is likely to kick in from September, according to ICICI Securities.

Analysts also expect export-related woes to have bottomed out in July with global headwinds, in the form of currency unavailability, beginning to resolve.

“Exports (of two-wheelers) continued its gradual recovery as volumes improved 27% month-on-month (in July) but were still down 15% year-on-year,” said Motilal Oswal.  (KNN Bureau)