>TWO WHEELERS DEALER SURVEY (INDIA INFOLINE)

Over the past few months two-wheeler volumes have been on a steady rise, primarily driven by strong in rural volumes. However off late there have been indications of a recovery in urban volumes. To understand the ground realities, we conducted a dealer survey for two wheeler manufacturers with focus on tier-I and tier-II cities. Our coverage encompassed 30 dealers from cities of mumbai, Delhi, Chennai, Hyderabad, Nashik, Bangalore, Ahmedabad, Jaipur, Nagpur, Indore, Coimbatore, Amritsar and Vadodara. Hero Honda dealers accounted for 47% of the dealers surveyed while 37% were Bajaj Auto dealers and remaining 17% were from a mix of TVS motors and multi-brand dealers. Most of the dealers felt that the current festive season would be better than previous year and the current growth trend is likely to peak out following the festive season.

• Festive season a key driver for growth
• Economic recovery improving consumer sentiment
• Manufacturer's efforts vital for enhancing brand value
• Credit availability improving but still below historical highs
• Outlook remains positive
• Stocks adequately factoring near term earnings growth

To see full report: AUTOMOBILE SECTOR