The share of two-wheelers has gone down significantly in India. This is at an all-time low in this decade. The obvious factors are frequent price increases, the never-ending pandemic, its economic impact on the middle-class Indian families.
For all the vehicles registered in India, the share of two-wheelers has gone below 74%. This has happened for the first time since financial year 2013. Only in August and September, the shares slashed to 70%.
The data regarding the lower two-wheeler shares has been obtained by the Federation of Automobiles Association (FADA) from the statistics of the VAHAN platform managed by the road transport and highways ministry.
FADA President Vinkesh Gulati says that due to financials getting hit by the continuous grip of the pandemic the lower-middle class and middle class have been greatly affected.
Even before Covid 19 sales figures of two-wheelers were not something significant. 21 million units sold in FY19 which tanked to 15 million units in FY21.
The demand for entry-level bikes went down and due to the introduction of regulatory norms such as BS6, prices went up by 20% or even more.
If that was not enough fuel prices increased and went over INR 100 affecting the end consumer.
The two-wheeler market may end this financial year at sales figures of 16.5-16.8 million units. This figure indicates a growth of 10 to 12% over the FY21 figures but remains lower than the FY19 figures.
In the immediate future, there are hopes of an increase in two-wheeler sales in the upcoming festive season in India.