By IANS,
Mumbai: Ratings company Credit Analysis and Research (CARE) Wednesday said the two wheeler industry is expected to grow at 19.4 percent this fiscal.
“Longer term outlook is also expected to be healthy, with the domestic sales projected to grow in double-digits over the next five years,” the company said in a statement.
CARE also said that it expects investment for capacity expansion of about Rs.900-Rs.1,000 crore in the sector over the next two-three years. The investment would also be focused towards product development.
“Around 1.6 crore two-wheelers are aged above 10 years, as against the domestic sales of 93 lakhs in the fiscal 2010. The demand for replacing old two-wheelers is a huge growth potential for the industry in coming years,” said D.R Dogra, chief executive and managing director, CARE Ratings.
The industry showed considerable growth in the last year with cumulative growth of 26.4 percent over the corresponding financial year.
“The acceleration continued in fiscal 2010-2011 with the first five months (Apr-Aug 2010) registering a growth of 27.2 percent”,” the statement added.