India’s two-wheeler industry is set to record its fastest growth in at least five years in fiscal 2017, boosted by plentiful monsoon rains that invigorated the key rural market and higher spending expected in cities because of a salary hike to government staff.
Industry players are predicting the market to grow at least in high single digit in current fiscal year through March 2017. If the monsoon rains continue to be plentiful, the rate may even break into double digits. With softening fuel prices and easing interest rates, fundamentals are already in place to drive demand, they said. Two-wheeler sales last grew in double digits in fiscal 2012, when the increase was 14%. Since then, the growth has been between 3% and 8%.