2-wheeler industry to grow at 13% in FY 12

Following a strong double-digit growth of 17.3% in the second quarter of current financial year, the two-wheeler industry in India is expected to report a volume growth of 13% in the current financial year and a volume CAGR of 10% to 12% over the next five years to reach a size of 21 to 23 million units by 2015-16, said an analysis done by Icra.

The Indian two-wheeler industry reported a strong double-digit volume growth of 17.3% in Q2, FY12, even as several other automobile segments showed signs of a cyclical dip in growth during this period.

While the northward movement in macro-economic variables including inflation, fuel prices and interest rates has been the nemesis of the automobile industry at large, the two-wheeler industry has been relatively less impacted so far. It is believed that the resilience shown by the sector is likely to persist, with the industry looking to record yet another year of double-digit growth, Icra pointed out.

The outlook is built on the strength of the various structural growth drivers such as favourable demographic profile.