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Two wheeler sales slipped into a single digit growth.

Inventory @ 6-8 weeks

Since September 2018,when compulsory five-year third-party insurance became effective,Two wheeler sales have slipped into a single digit growth from around 20% earlier,as cost of ownership increased substantially.

The customer enquiries have increased but they are not converting into sales at the pace it is required,” a Hero MotoCorp dealer in the NCR told FE.

Since September 2018,when compulsory five year third party insurance became effective,Two wheeler sales has slipped into a single digit growth from around 20% earlier.

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The premium on average for the commuter segment(100-125 cc) has gone up from Rs.1800 to over Rs.5000 and for higher segment bikes.

Most of the two-wheeler Companies like:Hero,Bajaj auto and TVS Motor are offering heavy discount in the range of Rs.800-Rs.2,500 to clear the stock.

Total two -wheeler dispatches to dealers fell over 5%year on year in January.From the October -December quarter :

Royal Enfield in its post result update said overfall inventory stands at 4-5 weeks as of date.”Enquiries have declined in mature markets.” the company said.Royal Enfield has once again cut its production guidance to 8,70,000 units in FY19.

Analyst said seasonal weakness during the third quarter of FY19 is likely to affect near-term volume growth with no signs of prices coming down.”In two -wheelers,high dealer inventory build up is likely to have dragged down sales,in addition to demand issues.

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