Demand For Two-Wheelers Increase in First Half of 2024

The first half of 2024 has been good for the two-wheeler segment, largely driven by improving performance in rural areas. According to the Federation of Automobile Dealers Associations, rural contribution to two-wheeler sales surged by 57-60% in the first quarter of 2024-25. In the rural market, there is a continued popularity of motorcycles over scooters because motorcycles suit rural road conditions.

Experts believe that this trend will continue considering the ongoing monsoon season and government initiatives aimed at rural development. Overall, two-wheeler sales in H1 of CY 2024 increased by 11.76% in comparison to the same period in CY 2023, despite challenges such as extreme heat and the election period. Analysts also emphasise facts like adequate rainfall and limited public transport options in rural areas are crucial factors driving this recovery.

Analysts also predict that maintaining affordability and controlling overall ownership costs will be crucial for driving two-wheeler sales in price-sensitive rural markets. Therefore, reducing the fuel price accompanied by tax cuts could positively impact two-wheeler sales.