The sales of two-wheelers are predicted to witness a significant surge compared to other automobile categories between 2023 and 2028, as per a report from a ratings agency cited by TOI.
According to the report, during this period, the compound annual growth rate (CAGR) is expected to range from 9% to 11%, resulting in a total of 25.9 million to 26.1 million units.
By FY32, the sales are projected to nearly double to 30.7-30.9 million units from 16.3 million units in FY23. Factors such as improving income levels, customer sentiments, and increasing demand for personal mobility are likely to drive these sales.
The report by Crisil suggests that the number of two-wheelers sold per 1,000 population will rise from 121 in fiscal 2023 to 136-140 in fiscal 2028 and 150-154 in fiscal 2032.
On the other hand, passenger vehicle sales are expected to achieve a CAGR of 5-7% between fiscals 2023 and 2028, reaching 5.2-5.4 million units. The growth rate is anticipated to slightly decline to 4-6% between fiscals 2028 and 2032, resulting in 6.2-6.4 million units.
TOI.in
The anticipated growth in the later period can be attributed to several factors, including increased accessibility to financing options, improvements in road infrastructure, higher consumer incomes, strong order backlogs for automotive companies, resolution of supply-chain challenges for auto original equipment manufacturers (OEMs), and the expected impact of new model introductions. Consequently, the sales of passenger vehicles per 1,000 people are projected to increase from 25 in fiscal year 2023 to a range of 28-32 in fiscal year 2028 and 35-39 in fiscal year 2032.
According to Crisil, India is set to spend around Rs 143 lakh crore on infrastructure in the next seven fiscal years through 2030, which is more than double the amount spent in the previous seven years, starting from fiscal 2017. Out of this total, Rs 36.6 lakh crore will be invested in green initiatives, marking a five-fold increase compared to fiscals 2017-2023.
“We predict that India’s GDP will grow at an average rate of 6.7% through fiscal year 2031, making it the fastest-growing economy among large countries. Furthermore, the per capita income is expected to rise from USD 2,500 to USD 4,500 by fiscal year 2031, transforming the country into a middle-income nation. This growth will be driven by infrastructure development, with a strong focus on sustainability,” said Amish Mehta, MD and CEO of Crisil.
(With TOI inputs)
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