MUMBAI : Following the covid-19 crisis, the two-wheeler industry is expected to see another tough year with demand further shrinking by up to 13% in FY2021, credit rating agency Icra Ltd said on Monday.
Icra said that as impact of the pandemic on the economic growth and discretionary spending, which was already under stress through the last fiscal, the two-wheeler demand is likely to further contract in the range of 11-13% year-on-year.
The two-wheeler industry, Icra estimates, will shrink to 18 million units in FY2021. India’s two-wheeler industry had jumped to 20 million units in FY2018 from 17.5 million units in FY2017, growing at 15% YoY.