Two-wheeler industry to grow by 9% in 2014-15: Icra

India's two-wheeler industry is expected to grow about 9 per cent in 2014-15 as volumes in the short term are expected to draw support from the replacement demand, credit rating agency Icra said today.
Over the medium term, the industry is expected to report a compounded aggregate growth rate (CAGR) volume of about 9 per cent to reach 23 million units (domestic + exports) by 2016-17, the Icra report said.
In the first five months of the current fiscal, the two wheeler industry has recorded a strong growth with sales volumes expanding by a healthy 14.8 per cent year-on-year, the fastest pace of growth since 2010-11.

While strong demand for scooters has been the primary driving force behind the overall two-wheeler industry in the last three years, the motorcycle segment's contribution too has gained force in 2014-15 by virtue of greater replacement demand and new model launches by various original equipment manufacturers (OEMs), the Icra report said.
Scooters contributed 27 per cent to domestic two-wheeler industry during the five months in 2014-15.
"The fast expansion of the scooter segment's pie has encouraged most OEMs to launch new models to capitalise on growing opportunity offered by this segment," Icra Senior Group Vice President Subrata Ray said in a statement.

"In 2012-13, three new scooter brands were launched in India, but the count of new brands introduced increased to six in 2013-14 and in 2014-15, already four new models have been launched by various OEMs with more being in the pipeline," he added.