Two-wheeler sales to grow 8-10% in FY18 note ban pangs waning: ICRA

New Delhi: Two-wheeler sales in India have started to recover and are expected to rise by 8-10 per cent in FY 2017-18, as per credit rating agency, ICRA. The sales from November 2016 to March 2017 fell 6.5 per cent year-on-year due to demonetisation and ban of BS-III models. However, as the impact of demonetisation has started fading, two-wheeler sales recorded a growth of 7.3 per cent in April 2017. ICRA further stated that pent up demand due to the deferment of purchases from October 2016 to March 2017 will also give a boost to demand from this segment. Revised pays to government employees, pensioners and muted consumer price index (CPI) will support demand from the urban segment. Demand from the rural segment will be supported by two good crop seasons, forecast of normal monsoon and rural employment guarantee schemes.

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