Weak rural demand, price hikes behind motorcycle sales slump
News from Livemint:

Companies are now pinning hopes on the marriage season, which typically spurs sales of two-wheelers in rural India, and a normal monsoon. Photo: Ramesh Pathania/Mint

Mumbai: Motorcycle sales in India, which bucked the trend in a slowing automotive market over the nine months between January and September 2014, have hit a rough patch over the past four months and may end the year to 31 March with low single-digit growth.

That compares with average growth of 13% a year between 2009-10 and 2013-14.

Overall, sales of scooters and motorcycles are on the rise, but this is largely because of the former. Motorcycle sales have slowed and inventories have increased at dealerships because of tepid rural demand and a higher excise duty.

Market leader Hero MotoCorp Ltd gets close to 45% of its total motorcycle and scooter sales from rural India.

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