Icra revises FY21 2-wheeler sales forecasts downward, says may dip 16-18%

ICRA had earlier said that two-wheeler sales could decline by 11-13 per cent in the current fiscal

Ratings agency ICRA on Thursday revised downwards sales forecast for two-wheelers in India, expecting it to decline by 16-18 per cent to around 17 million units in FY2021.

ICRA had earlier said that two-wheeler (2W) sales could decline by 11-13 per cent in the current fiscal.

In a statement, the rating agency attributed the revision in sales forecast to "overall macroeconomic scenario, the Covid-19 demand-supply disruptions, looming income uncertainties and increased cost of ownership of BS-VI vehicles".

The aggregate capacity utilisation levels for the industry sample is expected to decline to 55-60 per cent from around 70 per cent, it added.

"However, despite moderation, the