A recent report highlights a significant rebound in the rural two-wheeler market during the first half of 2024, signalling a strong recovery in this segment.
According to the Federation of Automobile Dealers Associations or FADA, rural areas have seen a notable increase in two-wheeler sales, contributing approximately 57 to 60 per cent to the total sales in the first quarter of 2024 (April to June). This surge indicates a growing demand for two-wheelers in these regions.
Overall, two-wheeler sales saw an 11.76 per cent increase in the first half of 2024 compared to the same period in 2023, despite facing challenges such as extreme heat and the election period.
The uptrend is expected to benefit major manufacturers like Bajaj Auto and Hero MotoCorp. Bajaj’s introduction of the Freedom 125, a CNG-powered motorcycle, provides a cost-effective option for rural consumers, while Hero MotoCorp’s strong position in the entry-level segment aligns well with the rising rural demand.
Although sales from January to June 2024 reached 8,982,502 units, marking an 11.76 per cent increase year-on-year, there was a slight decline of 0.189 per cent in sales compared to the latter half of 2023.
Concerns about a consistent recovery had emerged earlier due to uneven precipitation affecting farm incomes and rural demand. However, experts anticipate continued growth driven by a favourable monsoon season and government initiatives aimed at rural development.
