AHMEDABAD: After declining for two straight months, demand for two-wheelers has begun picking up since the end of June. Some 59,124 two-wheelers were registered in June 2021, according to data from the Gujarat chapter of the Federation of Automobile Dealers’ Associations (FADA). In April and May, registration numbers saw a major fall indicating a dip in demand.
As the restrictions eased, according to dealers, demand has picked up and sales look buoyant ahead of the Rath Yatra. Even though two-wheeler registrations grew by 29% against June 2020 (45,716 registrations), overall demand remains 30% below pre-pandemic levels.
“While June saw good momentum and a recovery in two-wheeler sales, it was far from pre-pandemic levels. With schools and colleges not reopening, two-wheeler sales have not picked up well because students account for 15% of sales of two-wheelers in Gujarat. In fact, a quarter of June sales every year are from students, as the period coincides with college reopening time,” said Pranav Shah, Gujarat region chairman of FADA.
FADA members also say that there has been a great migration of two-wheeler buyers from Gujarat to outside of the state, due to the work-from-home mode of operations. “The biggest impact of the Covid-19 pandemic is on the lower-middle class who faced loss or reduction of income. These people are the core customers of entry-level two-wheelers. Sales through financing have also fallen significantly. For these reasons, sales of two-wheelers have not recovered to pre-pandemic levels,” said Shah.
