Sale of Two-Wheelers May Go Down In Current Financial Year: ICRA

The rating agency attributed the reduction to continuous rise in prices of two-wheelers, costlier petrol among other reasons.

Sale of Two-Wheelers May Go Down In Current Financial Year: ICRA: File Image

New Delhi: The credit rating agency, ICRA, said sales of domestic two-wheelers could decline by 1-4 per cent on an annual basis in the current financial year. The rating agency attributed the reduction to continuous rise in prices of two-wheelers, costlier petrol among other reasons.

ICRA said that the lacklustre festive season performance also highlights the continued wariness among the low-income population regarding big-ticket purchases. ICRA expects domestic two-wheeler volumes to contract by 1-4 per cent in Fiscal Year 2022, following a weak festive season performance for the industry.

Sales in April-October

The sales of two-wheelers in the domestic market in the April-October period of Fiscal Year 2021-22 were 80.5 lakh units, which was almost the same as last year during the same period. The rating agency said financiers have remained cautious after witnessing an increase in delinquency levels.

24.94 per cent decline in last month

The shortage of semiconductors globally has once again affected vehicle sales. Last month, that is October 2021 saw a decline of 27.15 per cent in passenger vehicle sales. As compared to October 2020, sales of two-wheelers witnessed a decline of 24.94 per cent.

Figures released 10 days ago

These figures were released 10 days back by the Society of Indian Automobile Manufacturers (SIAM). SIAM said the shortage of semiconductors has started affecting the production of vehicle manufacturers. This has reduced passenger vehicle wholesales in India by 27 per cent on an annual basis.