New Delhi, Feb 2 (FN Agency) With easing supply chain constraints and spillover impact from positive announcements on infrastructure spends and agri-initiatives in the budget, the auto industry is optimistic about recovery in the coming months, rating agency IRCA said. “January 2022 saw the two-wheeler industry post a 14 per cent sequential growth in domestic wholesale volumes (as per data released by 6 major OEMs). However, the sales were 21 per cent lower on a YoY basis, highlighting the adverse impact of price hikes, fuel inflation and Omicron related concerns on consumer sentiments,” said Rohan Kanwar Gupta, Vice President and Sector Head – Corporate Ratings, ICRA.
He said the supply chain issues in production of premium motorcycles also persisted while the reinstatement of localised restrictions, to contain the third wave of the pandemic, constrained retail sales and led to a 11 per cent sequential (14 per cent YoY) fall in volumes,to 10.2 lakh units. In contrast to the domestic sales environment, steady demand from African and South American regions continued to be the silver lining for the industry, with exports clocking steady volumes of over 3.5 lakh units in January 2022 — a 3 percent sequential growth, the agency said. It said the domestic electric two wheeler sales continued to have a dream-run in 10m FY 2022, posting a 5x YoY growth at 1.49 lakh unit sales. “In January 2022, high-speed e2Ws saw a 11 per cent MoM growth with 27,563 unit sales (highest monthly sales this year),” it said.