Coming as a positive signal for the rural two-wheeler (2W) market, a recent report said there has been a recovery in the two-wheeler segment in the first half (H1) of 2024.
This surge is primarily due to the emerging performance in rural areas.
As per the Federation of Automobile Dealers Associations (FADA), the rural contribution has jumped by approximately 57 to 60%in the first quarter of 2024 (April to June), indicating a rising demand for two-wheelers in these regions.
Overall two-wheeler sales in the first half of 2024 increased by 11.76% compared to the same period in 2023 despite challenges such as extreme heat and the election period.
The recovery is expected to benefit manufacturers like Bajaj Auto and Hero MotoCorp, as Bajaj’s launch of the Freedom 125, a CNG-powered motorcycle, offers a cost-effective alternative for rural consumers, while Hero MotoCorp’s strong presence in the entry-level segment positions it well to capitalise on the increasing rural demand.
Although the total sales of two-wheelers from January to June 2024 marked an 11.76% increase, reaching 8,982,502 units compared to the same period in 2023, there was a slight decline of 0.189 per cent in sales compared to the latter half of 2023.
Earlier, due to the uneven precipitation which impacted farm cash flows and consequently rural demand, concerns were raised about a consistent recovery for the industry.
Experts believe this trend is likely to continue, fuelled by a good monsoon season and government initiatives focused on rural development.