Automobile Sector Outlook 2014 by Dun & Bradstreet India shows that decrease in sales of two-wheelers in the country continued gradually this year. It is however expected to improve during the forthcoming year.
The sales figures of two-wheelers showed a decline of 4.1 per cent till November 2013. This is upsetting considering the otherwise growth of 5.8 per cent and 15.9 per cent for the corresponding period in 2012 and 2011 respectively. The major factors that caused this are the fuel-price hike, high inflation levels and the ever-rising interest rates.
Nevertheless, the report indicates that the sales numbers of two-wheelers in India are expected to improve with a greater demand of motorcycles and scooters in 2014. The consumers will be treated fairly well owing to the moderation in inflation. This growth, though minimal, will majorly be due to the demand from the rural sector in the country.
The exports from manufacturers are expected to be still under the question with the current decrease, though India becoming an export hub for many manufacturers. Notwithstanding, the surplus benefits for the companies will see the crunch owing to the economic slowdown.