From Hero MotoCorp to TVS Motor, rural gains ahead for two-wheeler stocks

With higher rural growth, analysts expect the entry-level or economy segments to do well as was the case in FY18 when the economy segment grew 23 per cent

After ending FY18 on a strong note, listed two-wheeler majors are looking at a second consecutive year of double-digit growth in sales volume. The sector recorded a growth of 15 per cent in FY18 after two years of muted performance. The trend is expected to continue in FY19 if April numbers are anything to go by. Volumes of most two-wheeler majors were up 20 per cent year on year on higher rural demand.

Bharat Gianani of Sharekhan expects 10 per cent growth in two-wheeler sales in FY19. He believes, strong rural demand due to normal monsoons (as per forecast) for the