The industry report depicts, high interest rates on two-wheeler loans and the uncertain monsoon period are likely to impact companies like Hero Honda, TVS Motor, Bajaj Auto, etc. The two wheeler industry is expected by the experts to be register by itself less than double digit growth due to continued lack of focus by financiers such as banks. In 2008, the two wheeler industry, comprising motorcycles, scooters, mopeds and electric bikes, witnessed of 7.43 million units sales.

As per a banking industry analyst, the interest rates on two-wheeler loans are still as high as 21-24 per cent. Moreover, in two wheeler segment, small ticket size of the loan, high operating costs in the rural and semi-urban areas and fear of non-performing assets are cited as the risks that curb greater lending. A leading player in the two-wheeler finance, private sector banks such as HDFC Bank, offers a flat rate of 12.50 per cent (about 22-24 per cent on a declining balance basis). An analyst said that, loans in rural and semi-urban areas are costlier by 2 to 3 percentage points than those prevailing in urban areas.

'The Times of India' exclusively reported, another major factor which may seriously hamper the sales of two-wheelers are the uncertain monsoons as poor rains could hit the income and sentiments in rural and semi-urban markets that account for a significant portion of demand in motorcycles and scooters. Rural and semi-urban markets are currently the key growth drivers for two-wheeler sales, claims the industry observer.

Best Selling Bike Models: Bajaj | Hero | Hero Honda | Honda | Indus | Kinetic | Royal Enfield | Suzuki | TVS | Yamaha

Related News:
BMW plans to re-enter Indian market with Motorrad bikes
Yamaha India introduces Racing Kit Parts from Daytona
Honda’s 21 high-end bikes worth Rs 12.5-Rs 9.5 lakh are sold
Suzuki sales boosts, 100 units sold of bikes priced Rs 12.5 lakh

Related Books:
Draw Fifty Cars, Trucks and Motorcycles
Early Motorcycles: Construction, Operation and Repair
Big Motorcycle: A Story of Tokyo

Add a comment

Posted by Naresh Koshti on 24 July, 2009 12:31:48 PM IST #