India’s Two-Wheeler Market Grows by 8%, Tractor Sales See 4% Rise: Nuvama Report
A recent report by Nuvama, a wealth and investment firm, predicts that India’s two-wheeler (2W) industry will grow by 8% year-on-year (YoY). This growth is driven by strong rural demand and sustained urban sales. The favorable monsoon has improved rural sentiments, leading to an increase in sales. Dealers are also building up inventory ahead of the festive season, which is expected to boost wholesale volumes.
The tractor industry is anticipated to see a 4% YoY growth in the domestic market. Improved farmer sentiments, driven by normal monsoon conditions, and favorable terms of trade have contributed to this positive outlook.
However, the Passenger Vehicle (PV) segment is likely to experience a marginal decline of approximately 3% YoY. This is due to the early onset of the festive season last year, creating a high base effect. The Commercial Vehicle (CV) industry is also expected to face a slight contraction of around 4% in annual growth, primarily due to a high base effect for cargo vehicles.
Overall, the report suggests that August 2024 volumes will be a mixed bag for the automotive industry, with growth in the 2W and tractor segments, while PV and CV segments will face challenges. Mass-market players among 2W Original Equipment Manufacturers (OEMs) are expected to perform well.
In India’s automobile market, 2-wheelers and passenger cars account for 75.3% and 17.6% of the market share, respectively. While small and mid-sized cars dominate passenger car sales, SUV sales have increased significantly in recent years.
In the export market, India’s automobile exports in 2023-24 were recorded at 45,00,492 vehicles, with 2-wheelers accounting for 76.8% of the total exports. During the same period, passenger vehicle exports increased from 6,62,891 units to 6,72,105 units, registering a positive growth of 13.8%.
India aims to double its auto industry size to Rs 15 lakh crore by the end of 2024.
Doubts Revealed
Nuvama -: Nuvama is a company that studies and reports on different markets, like how many vehicles are sold in India.
Two-wheeler -: Two-wheelers are vehicles like motorcycles and scooters that have two wheels.
Tractor -: Tractors are strong vehicles used mainly in farming to pull heavy loads and plow fields.
Monsoon -: Monsoon is a season in India when it rains a lot, which helps farmers grow crops.
Passenger vehicle -: Passenger vehicles are cars that people use to travel from one place to another.
Commercial vehicle -: Commercial vehicles are trucks and buses used to transport goods and people for business purposes.
Auto exports -: Auto exports are vehicles made in India and sold to other countries.
Rs 15 lakh crore -: Rs 15 lakh crore is a very large amount of money, where ‘Rs’ stands for Indian Rupees, and ‘lakh crore’ is a way to count big numbers in India.