Two-wheeler sales rise 20 per cent

Sales of two-wheelers in the month of July grew by 20.1 per cent over the same month last year, at 719,668 units, the highest growth till date in 2009–10. This strong growth comes on the back of Hero Honda, which has around 60 per cent of the market share, Yamaha, and Suzuki posting double-digit growth for the month.

Motorcycles constitute about 76 per cent of all two-wheeler sales. For market leader Hero Honda, the ratio of urban to rural sales are roughly in the ratio 60:40. Analysts say most rural purchases of two-wheelers are largely by cash. “This segment could get impacted, should the monsoons be inadequate in the coming months, which could affect farm incomes,” says H S Goindi, president (sales) of TVS Motors.

The other key factor is the repossession norm currently being deliberated by the Reserve Bank.