Posted On : 06 Apr, 2020
According to ICRA, sales of 2 Wheeler in India are expected to be around 18 million units during the recent fiscal year, a fall down of 11-13% in FY15.
We all are Praying to GO CORONA GO, and it may soon go away but the long-lasting impact of COVID-19 will be reflected in the complete ECONOMY.
During this hard time, Complete world is struggling very hard to save lives and their economy.
LOCKDOWN due to coronavirus, is also the reason and impacting the whole world economy , including the AUTOMOBILE INDUSTRY. A big fall down in 2 wheeler sales can be seen due to COVID-19 Pandemic Breakout .
The economic growth and discretionary spending is expected throughout the financial year due to the lockdown caused by the slowdown in economic activity in the country.The extent of recession remains on the severity of coronavirus outbreaks and thus a continuation of lockdown.
“Mr. Shamsher Dewan (Vice President,ICRA) said- “we expect for another year brace from 2 wheeler OEM’s to decline operating margins. Apart from lower sales, Due to the cost incurred in re-calling BSE 6 inventory, the earnings pressure on dealers will also arise and due to the shutdown Which is likely to remain unsold.
However, ICRA has not reduced the expectation of medium-term growth from the two-wheeler segment.