India’s vast powered two-wheeler production will grow by only about one per cent in the current fiscal year to 31 March 2014, claims leading Indian ratings agency ICRA.
This prediction is set against a growth-rate collapse during the previous 12 months, which saw output expand by only 2.9 per cent to 13.8 million units. Prior to that, the historical annual average improvement was six to seven per cent.
However, over the medium and longer term, ICRA is confident that growth will again accelerate, as manufacturers focus more strongly on export markets and domestic Indian demand recovers from its present stagnation. The agency says that it expects the industry to be reporting yearly sales of 21-22 million units by 2017.
Manufacturers’ own estimates are still optimistic for 30 million units rolling out of Indian motorcycle factories annually by 2020.