Two wheeler sales in July up by 20 % YoY
BS reported that sales of two wheelers in the month of July grew by 20.1% YoY over the same month last year at 719,668 units, the highest growth till date in 2009-10. This strong growth comes on the back of Hero Honda, which has around 60 per cent of the market share, Yamaha and Suzuki posting double-digit growth for the month.
Motorcycles constitute about 76% of all two wheeler sales. For market leader Hero Honda, the ratio of urban to rural sales is roughly in the ratio 60:40.
Analysts said that most rural purchases of two wheelers are largely by cash. Mr HS Goindi president (sales) of TVS Motors said that "This segment could get impacted, should the monsoons be inadequate in the coming months, which could affect farm incomes."
He added that the other key factor is the repossession norm currently being deliberated by the Reserve Bank.
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