Two-wheeler registrations sluggish in January on tepid demand, down 7% YoY

According to a dealer, the decline in registration volumes was mainly on account of market leader Hero MotoCorp, which normally sells a two-wheeler every second in the rural market

Two-wheeler manufacturers are unlikely to get respite from slowing sales anytime soon. Registration of two-wheelers, an indicator of actual demand on the ground, was down 7 per cent in the first 20 days of January when compared with the same period a year ago. Besides tepid sentiment in urban markets, the sluggishness in sales, according to dealers, was distress in rural India. Dealers and manufacturers are now hoping for a cut in the goods and services tax (GST) rate on two-wheelers from the current 28 per cent to 18 per cent. Meanwhile, inventory in dealerships is at a two-month high