Sluggish festive sales on cards for twowheelers

NEWDELHI: Two-wheeler manufacturers may have to face a subdued festive season this year as sales of motorcycles and scooters in important markets such as Kerala and West Bengal are down by almost 60% or more—due to floods in the former case and adverse policy announcements in the latter. Usually the festive season generates a third of the sales recorded in a year.

Vehicles sales in Kerala have come to a standstill after being hit by floods with a tepid Onam that kicks off the festive season.

Meanwhile, sales in West Bengal are down almost 60% after the state government said that only people with a driving licence will be allowed to buy vehicles. The new rule is aimed at cutting road accidents.

According to a senior executive at one of the largest two wheeler manufacturing companies, the two states, Kerala and West Bengal put together contribute more 10% of the total sales of the industry—roughly translating to 60,000 units per month.

“We will have to compensate the loss from these two states by pushing more in other states. Both the states are very important markets. This decision by the state government of West Bengal has hurt sales of both motorcycles and scooters and sales have fallen by more than 50% in the last few months,” said the executive on condition on anonymity.