Motilal Oswal
  • SENSEX
    NIFTY 50
Motilal Oswal
VIDEOS
Auto

Two-wheeler space could see 8-10% decline in growth in March, says LKP Securities’ Ashwin Patil

Updated : March 19, 2019 12:55 PM IST

Two-wheelers are likely to see 8-10 percent decline in growth in March, said LKP Securities’ Ashwin Patil, in an interview with CNBC-TV18, after reports claimed that the segment will see production cut by 15 percent from March to May.

The inventories levels with two-wheeler makers are very high, forcing them to cut production to rationalise inventory at the dealer level. The inventory level is as high as 80-90 days versus average levels of 20 days.

Hero Motocorp and Eicher Motors came under pressure following the reports of a production cut.

“On the two-wheeler side the combined braking system (CBS) and anti-lock braking system (ABS) safety norms implementation is going to happen from April 2019 and hence the companies are citing that the demand will be further down post April because of the cost price increase which would be happening on the two-wheelers,” said Patil.
primo org
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
cnbc two logos
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more
Live TV