Two-wheeler sales may remain under strain for two years: Suzuki

NEW DELHI: Two-wheeler sales in the local market will remain under pressure for the next two years on account of price increases from the implementation of higher safety and emission standards, despite the stimulus package extended by the government, the managing director of Suzuki Motorcycle India said.The government measures will help improve liquidity in the market, but introduction of higher safety standards and insurance costs have already raised two-wheeler prices by 15%, Koichiro Hirao told ET.While this has hit demand in the market in the ongoing fiscal year, the switchover to Bharat Stage VI emission standards next year will raise prices by up to another 20%, he said.“Measures announced by the government will help but marginally,” he said. “What has been announced will have an impact on increasing liquidity; lending rates may come down. (But in the) two-wheeler business, dependence on retail finance is relatively lesser than other automotive products … we do not see the slowdown ending very soon.”Two-wheeler sales in the first four months of this fiscal have declined 13% to 6.5 million units. The market next fiscal may remain at levels similar to this year, Hirao said. “Acquisition costs have gone up by 15%. We anticipate with BS-VI coming in seven months, that will again have a similar price increase,” he said.

from Economic Times https://ift.tt/32exbV2