Rural boost for two-wheeler companies; risk-reward favourable for Hero

Risk-reward favourable for Hero; rising competition and commodity prices may play spoilsport

Aided by a recovery in rural markets and a low base, the two-wheeler segment posted a 25 per cent-plus growth for the second month in a row. The growth was led by TVS Motor, which sold 36 per cent more two-wheelers in February over the year-ago period.

Sales of Hero MotoCorp, Bajaj Auto and Royal Enfield also  grew at 20-25 per cent year-on-year. After an inconsistent period of growth in the second half of 2017, brokerages said the demand for two-wheelers was coming back.

One of the reasons for higher demand in February, which is likely to sustain, is an