Two Wheeler Industry to grow at 19.4% in FY11: CARE

A study conducted by Credit Analysis and Research Ltd’s (CARE) research division CARE Research reveals that two wheeler industry continue to cruse on a fast growth track on the back of stronger replacement demand. The industry is expected to grow at 19.4% in FY10-11. The longer term outlook is also expected to be healthy, with the domestic sales projected to grow in double-digits over the next five years.

CARE Research also expects Rs9bn to Rs10bn investment in the sector over next 2-3 years for capacity expansion as well as product development to meet rising demand. CARE Ratings, Managing Director and CEO D R Dogra believes “Around 1.6 Crore two-wheelers are aged above 10 years, as against the domestic sales of 93 lac in FY10. Thus, the demand for replacing old two-wheelers is a huge growth potential for the industry in coming years.”