Two-wheeler sales in the slow lane in Jan on rural distress, tepid demand

The overall registration volumes have been dragged down by the market leader Hero MotoCorp, which sells every second two-wheeler in the rural market, according to dealers

Two-wheeler makers are unlikely to get any respite from slowing sales anytime soon. The registration of two-wheelers, an indicator of actual demand, was down 7 per cent in the first 20 days of January compared to the same period a year ago. Dealers attribute the sluggishness in sales to distress in rural India as well as tepid sentiment in urban markets. Manufacturers and dealers are now holding out hopes for a cut in the goods and services tax (GST) rate from the current 28 per cent to 18 per cent. 

Meanwhile, inventories at the dealerships remain elevated across the country,