Kolkata, June 11 (IANS) Rating agency ICRA Tuesday said it expects the domestic two-wheeler industry volumes to remain flat in 2013-14 as demand slowdown as well as base effect catch up.
Domestic two-wheeler volume growth in 2012-13 had been slowest in the last four years. The industry recorded sales volumes of 13.8 million units in 2012-13, a growth of 2.9 percent over the previous year.
"Over the medium term, the two-wheeler industry is expected to report a volume CAGR (compound annual growth rate) of 8-9 percent to reach a size of 21-22 million units (domestic and exports) by 2016-17," ICRA said in a release here.
Various structural positives associated with the industry, including favourable demographic profile, moderate two-wheeler penetration levels, under developed public transport system and growing urbanisation, remained intact, it said adding that large opportunity was available to grow presence in overseas markets, mainly Africa and Latin America.