Key Points
The disparity grew during the pandemic when the rural demand was badly hit and poor weather later depressed it further...
Motorcycle and scooter sales in India, a significant proxy for demand in rural areas, likely grew in double-digits in the financial year 2023-24, crossing pre-Covid levels, buoyed by sustained revival in demand in urban as well as rural markets...
Two-wheeler makers from Hero MotoCorp to Honda Motorcycle & Scooter India (HMSI) and Bajaj Auto are seeing early signs of revival in demand for entry-level motorcycles which started with the festivals and sustained through the wedding season in northern parts of the country, especially in rural areas...
Vehicle registrations - a proxy for retail sales - increased in healthy double-digits by 13% Y-o-Y to over two million units in February amid better supplies and sustained consumer demand across rural and urban markets, as per data collated by FADA (Federation of Automobile Dealers Association)...
With supporting factors such as high overall growth and low inflation, rural demand can grow steadily, Rajani Sinha, Chief Economist, CareEdge Group, has told ET Now recently. "If you look at some of the indicators that we are seeing from the rural economy, like two-wheeler or tractor sales, while tractor sales still remain weak, we are seeing some improvement in two-wheeler sales..
