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Old 23rd November 2021, 19:57   #1
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2-wheeler makers to cut production by 35% in November 2021

This month, 2-wheeler makers are expected to cut production by 20-35% compared to October 2021.

2-wheeler makers to cut production by 35% in November 2021-heromoto.jpg

The festive season failed to bring cheer as demand was weak, and with dealerships sitting on huge inventories, manufacturers have been forced to tweak their production schedules.

The industry output for the month of November is estimated to be the lowest since 2012. Reports suggest overall production could be down to 1.35-1.40 million units. The situation may continue in December, causing the 2-wheeler market to shrink in FY2022.

Hero MotoCorp registered a low double-digit decline in sales during the festive season. However, the company expects demand to pick up during the upcoming wedding season.

Source: ET Auto

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Last edited by TusharK : 23rd November 2021 at 19:58.
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Old 24th November 2021, 15:25   #2
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Re: 2-wheeler makers to cut production by 35% in November 2021

"The festive season failed to bring cheer as demand was weak, and with dealerships sitting on huge inventories, manufacturers have been forced to tweak their production schedules.

The industry output for the month of November is estimated to be the lowest since 2012. Reports suggest overall production could be down to 1.35-1.40 million units. The situation may continue in December, causing the 2-wheeler market to shrink in FY2022."

This may be due to various reasons:

1. The ongoing grim situation of joblessness/salary cuts induced by Covid leading to delaying 2 wheeler purchases by the MIG.
2. Less disposable income in rural sector as agriculture sector isn't doing well due to torrential rain and floods in India.
3. Petrol prices , I know 2 guys in my neighbourhood who have booked OLA Scooter rather than buying another petrol guzzling Activa.
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Old 24th November 2021, 16:04   #3
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Re: 2-wheeler makers to cut production by 35% in November 2021

The prices have increased courtesy hikes by manufacturers and with the recent, illogical court verdict to have owners pay insurance for three years at the time of purchase.

And most of all, being the entry level market for the motorised world, its poor sales should be a matter of grave concern for the policy makers as a barometer of the well being of the lower and middle classes of our population. The poor sales indicate the poor financial conditions of the most vulnerable sections of the society, who either have low or non-fixed incomes. The rural sales have also plummeted, showing that all is not well economically with a majority of the rural population.

To top this, the high school and college classes are being held online since the past nearly two years. The student customers are hence shying away from buying two wheelers.
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