Two-Wheeler Sales Poised to Outshine Passenger Vehicles Driven by Festive Demand and Rural Sentiment

A PhilipCapital report forecasts that two-wheeler sales will outpace passenger vehicles for the rest of the year, driven by strong festive demand and improved rural sentiment. Discounts are selective for two-wheelers, while declining for passenger vehicles. Rural demand surged around Diwali due to farmer payments and the wedding season, boosting sales. Key trends include buyer upgrades and motorcycles growing faster than scooters.

Major players like Hero MotoCorp, TVS Motor Company, and Royal Enfield (part of Eicher Motors) reported significant festive growth. Hero MotoCorp saw over 40% YoY growth driven by commuter and 125cc models, strong rural demand, and wedding season momentum. TVS Motor achieved about 35% growth, with motorcycles like Raider and Apache leading. Royal Enfield recorded 30-35% growth from sub-350cc models, supported by brand loyalty and financing. Bajaj Auto showed modest low double-digit growth due to fewer new launches and discounts.

Impact: The sector benefits from GST cuts, lower ticket prices vs. passenger vehicles, a rebounding rural economy, and new product launches. This positive outlook is expected to continue until mid-December. Impact Rating: 7/10

Difficult Terms: * Outpace: To go faster than or be more successful than. * Rural Sentiment: General economic optimism in rural areas. * Festive Demand: Increased buying during holiday periods. * Mandi: Wholesale market for agricultural produce. * YoY growth: Year-on-year growth comparing performance to the previous year. * A&P: Advertising and Promotion. * PVs: Passenger Vehicles. * GST cut: Reduction in Goods and Services Tax.