Two-wheeler wholesales grew in double digits in the financial year 2022-23 after three consecutive years of double-digit decline, Jefferies has said in a recent report, wrapping up auto and auto-part markers’ performance in the year gone by.
Two-wheeler (2W) wholesales grew 19 percent year on year (YoY) in FY23 to 16 million vehicles after a YoY decline of 18 percent in FY20, 13 percent in FY21 and 10 percent in FY22.
The brokerage’s analyst expects the wholesale figures to keep growing in double digits till FY26, though at a slower pace — 18 percent in FY24 and FY25 and 10 percent in FY26.
Follow live updates and indepth analysis on the markets here
That said, despite the good show in FY23, the wholesale figures are still nearly a quarter below the FY19 peak of around 20.8 million.
Registrations, too, showed a marked improvement—from a decline of 30 percent in FY21 and a flattish trend in FY22 to 20 percent YoY increase in FY23.
Exports, however, were down 18 percent YoY due to macro and regulatory headwinds, but export volumes were still 11 percent more than what they were in FY19, the pre-coronavirus period.
Changing demand profile
The demand profile changed once more in favour of the premium-end in motorcycles and scooters in FY 23. This trend had first shown up in FY13-18 with urbanisation and premiumisation but the trend reversed over FY19-22 as the rural economy held up better than the urban and the replacement cycle was delayed due to Covid. In FY23, the tide again turned in favour of scooters and premium bikes, the report said.
Overall, FY23 was a “good year for Indian autos, with wholesale volumes rising double-digit YoY across PVs, 2Ws, trucks, and tractors,” the analysts said.
Passenger vehicles’ wholesale volumes grew to an all-time high of 3.9 million units, up 27 percent in FY23 from the previous year. The volumes were 15 percent more than what they were at the FY19 peak. Registrations rose 23 percent YoY.
Sports utility vehicles (SUVs) are still the preferred choice and made up 52 percent of the industry volume in FY23. However, the spread between SUV and car volumes reduced, with the latter growing at 19 percent after three years of decline.
Also read: PV sales surge 26.7 percent YoY in FY23; one in every two vehicles sold was a UV
Trucks saw another year of upcyle, with volumes growing 40 percent in FY23 from the previous year to 321,000 units, which is still 9 percent below FY19 peak.
Tractor wholesales grew 12 percent YoY, which was largely in line with a seven-year trend. The tractor industry has been growing at 10 percent CAGR over that period.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
