Two-wheel rides saddle up: Growth recovery, valuations to kick-start gains

Eicher hot on the trail of TVS, which is a top pick of most brokerages

After lagging behind other segments in the automotive (auto) space over the past few years, two-wheelers are expected to reverse their volume underperformance. After witnessing a 36.3 per cent volume decline over the 2018-19 (FY19) through 2021-22 (FY22) periods, the sector staged a recovery in 2022-23 (FY23), with volumes rising 17 per cent.

While volumes are still a quarter lower than the FY19 peak of 21 million units, a double-digit growth trajectory is expected to prolong. This is on the coat-tails of a lower base, a revival in rural demand, a strong replacement cycle, lower inventory, and stable ownership costs.