Two wheeler sales in July 2023 in India & Fuel price cut

 The total two-wheeler sales in India in July 2023 was 14,91,720 units, down 8.80 percent from the same month last year. Of these, the domestic sales stood at 12,05,662 units, down 7.76 percent year-on-year.

The top 5 selling two-wheeler brands in India in July 2023 were:

1. Hero MotoCorp - 3,91,310 units
2. Honda Motorcycle and Scooter India (HMSI) - 3,38,310 units
3. TVS Motor Company - 3,12,307 units
4. Bajaj Auto - 2,68,840 units
5. Suzuki Motorcycle India - 80,309 units

Hero MotoCorp was the clear leader in the two-wheeler market, with a market share of 26.2%. Honda Motorcycle and Scooter India was in second place, with a market share of 23.1%. TVS Motor Company was in third place, with a market share of 21.7%. Bajaj Auto was in fourth place, with a market share of 18.3%. Suzuki Motorcycle India was in fifth place, with a market share of 5.4%.

The two-wheeler market in India is expected to grow in the coming years, driven by factors such as rising income levels, increasing urbanization, and growing demand for personal transportation. The government's focus on developing the infrastructure for electric vehicles is also expected to boost the two-wheeler market in the coming years.

However Two wheeler sales have hit a temporary bump mainly due to lack of adequate disposable income in rural areas.

Two-wheeler sales in Indian rural areas were affected in July 2023. According to the Society of Indian Automobile Manufacturers (SIAM), two-wheeler sales in rural areas declined by 14% in July 2023, compared to the same month last year. This was due to a number of factors, including:

• The impact of the monsoon rains, which caused flooding and crop damage in many rural areas.
• The high cost of fuel, which made it more expensive for people to travel on two-wheelers.
• The slowdown in the rural economy, which led to a decline in demand for discretionary items such as two-wheelers.

The decline in two-wheeler sales in rural areas is a concern for the Indian automotive industry, as rural markets account for a significant share of two-wheeler sales in India. The industry is hoping that the festive season, which starts in September, will help to boost sales in rural areas.

In addition to the factors mentioned above, the following factors also contributed to the decline in two-wheeler sales in rural areas in July 2023:

• The rising prices of raw materials, such as steel and aluminum, which led to an increase in the cost of manufacturing two-wheelers.
• The shortage of semiconductors, which affected the production of two-wheelers.
• The ongoing COVID-19 pandemic, which has slowed down economic activity in rural areas.

The decline in two-wheeler sales in rural areas is a temporary setback for the Indian automotive industry. The industry is confident that sales will recover in the coming months, as the economy improves and the festive season gets underway.

We will wait with our fingers crossed. GOI would do well with both demand stimulus as well as taming inflation if Fuel prices are reduced by say Rs.5 per litre for Petrol and Diesel.Since Oil Marketing Companies have earned remarkable profits in the Q1 of FY 24 , they can afford to reduce the pump prices by atleast Rs.5 per litre if not more, inorder to pump prime the economy's demand & growth in the second half of FY24.