Two-wheeler sales continue downhill journey in May due to liquidity crunch

Bajaj Auto was the only company in the mass segment that bucked the slowing trend

Two-wheeler sales continued to skid in May as buyers deferred purchases owing to liquidity crunch, poor sentiment, and rural distress, shows the monthly sales data released by scooter and motorcycle makers on June 1. Marriage season and cashflows from rabi harvest, however, augmented motorcycle sales and moderated the decline for some firms.

The cumulative sales of the top six manufacturers, including Hero MotoCorp, Honda Motorcycle and Scooter India, and Bajaj Auto, declined 8 per cent to 1.8 million units over the year-ago period. Amid slowing sales and unsold stock pile-up, two-wheeler makers have been curtailing despatches to their dealers. Automakers count