Chart Beat: Two wheeler volumes shine in December quarter

Two wheeler companies are a step ahead of other automobile segments. As the chart alongside shows, the year on year wholesale volume growth clocked by two wheeler companies through each month of the December quarter is higher than the growth seen by passenger vehicles, commercial vehicles and tractors.

For instance, in December, volume growth of two wheeler companies stood at 15% vis à vis 6% growth in passenger vehicles. Medium & heavy commercial vehicles trucks and tractors saw their respective volumes fall by 2% and 17%. Sure, a favourable base aided growth rates for two wheelers. Even so, the demand environment is gradually recovering and that means improving prospects for the two wheeler segment.

On the other hand, the passenger vehicle segment is likely to see a slowdown. With pent up demand being met and pending order backlogs fulfilled, volume growth is likely to moderate. For tractors, rural demand needs to pick up pace while for commercial vehicles the upcoming election is a key monitorable..