Two-wheeler sales growth muted in Dec on dull rural demand, high inflation

Top-5 players post a combined sales growth of just 3% YoY; experts expect recovery to take some time

Sales growth at the country's top two-wheeler makers was muted in December 2022 primarily due to tepid rural sentiment amid uneven monsoon, high inflation and slow post-pandemic recovery.

Five major two-wheeler makers--Hero MotoCorp, TVS Motor, Bajaj Auto, Royal Enfield and Suzuki Motorcycle-- cumulatively sold 768,985 units domestically in December 2022, which is just three per cent more than in December 2021. (see table)

"High inflation and economic challenges impacted the rural economy and 2W (two-wheeler) sales," said Mitul Shah, Research Analyst, Reliance Securities, adding that the two-wheeler industry's recovery is much slower than expected and therefore, the pressure on unit