Two-wheeler industry growth to hit single digits

Hero Honda, the top two-wheeler maker in India has projected that growth in the two-wheeler industry would slide to a single digit in the coming months amid high interest rates and limited financing available.The company, which makes more than half the two-wheelers volume sold in the country, however, hopes to sustain the same growth momentum in the past year and a half. Last year some of the customers postponed sales due to high interest rates. But they could no longer postpone their purchases, which was reflected in increased sales in the first few months of this fiscal year. But, in the coming months, the two-wheeler industry may not see the same double digit growth that it saw in the first few months, said Anil Dua, vice-president of sales and marketing. (August 20, 2008)