Infomerics Valuation and Rating Pvt Ltd state that the two-wheeler production in India is on a decline. The SEBI-registered/RBI-accredited financial services credit rating company has revealed that domestic production has declined to 1.83 crores in FY21. The report titled “INDUSTRY OUTLOOK AUTOMOBILE INDUSTRY: EMERGING CONTOURS”, published by Infomerics Valuation. reveals that domestic production of two-wheelers during FY20 stood at 2.10 crore, compared to the current year the rate has considerably declined.
For the uninitiated, the Indian automotive industry is worth more than INR 8 lakh crore. This industry’s turnover contributes to 27% of the Indian industrial GDP and 49% of the Indian manufacturing GDP. In FY21, the production and sales numbers of two-wheeler production have also plummeted as compared to FY20, which also continued into FY22. The Indian two-wheeler manufacturer contributes around four-fifth of the overall automotive industry. The company also revealed that the passenger vehicles contributed approximately 13%.
Steps from the Government of India
The Government of India is also taking vital measures for the automotive industry. This will help the auto industry emerge as the top sector during FY2021-22. The automotive industry registered a 23% share of the total FDI Equity Inflow. The reforms made by the Government in FDI policies also enabled investment facilitation and improved the ease of doing business. The Government is also ensuring an enhanced FDI route and introducing a new INR 25,938 crore PLI scheme.
The Government’s PLI scheme will generate an estimated INR 42,500 crore of investment within the next five years creating over INR 2.3 lakh crore and 7.5 lakh job opportunities. The government also plans to extend the second phase of its FAME scheme by 2 years. In addition to this, the Union Cabinet has also approved an INR 76,000 crore scheme to boost semiconductor and display manufacturing in India.
CredR offers its customers hassle-free and genuine deals on Second-hand Two Wheeler For Sale. The company offers a comfortable platform for commoners who want to sell bikes online. Customers can also buy second-hand bikes from CredR at genuine prices.
