Two-wheelers prove to be better bet for auto makers amid economic slowdown

Analysts attribute this to the slowdown in the job market, which has a bigger economic impact on urban India

Two-wheelers have turned out to be a better bet for auto makers, compared to passenger cars and sports utility vehicles (SUVs). Sales of passenger vehicles (PVs), including SUVs, had declined to a four-year low of 2.65 million in FY20, even as the two-wheeler market grew 9 per cent between FY16 and FY20. In FY20, domestic PV sales slid 22 per cent year-on-year (YoY) to 2.65 million units, while two-wheeler sales declined 18 per cent YoY to 17.4 million.
 

Two-wheeler sales have consistently outpaced PVs over the past decade. PV sales have grown at a compound annual growth rate (CAGR) of