Two-wheelers drag down auto sales in January

Total of sector volumes down 4.7%, despite strong recovery in passenger vehicles after note ban

The domestic two-wheeler market showed a drop in volumes last month, the third such since demonetisation.

A drop of a little more than seven per cent in two-wheelers reflected in a five per cent hit in total automobile (passenger and commercial vehicles, two and three-wheeler) sales by companies to dealerships last month. This was in spite of a strong comeback in passenger vehicles (PVs), of 14 per cent growth. 

The situation was better than December, when overall automobile sales declined 18 per cent, due to a 22 per cent drop in two-wheeler volumes. Even so, except PVs (cars, vans and utility vehicles),