Scooters India stock opened at a loss of over 4.7% at Rs.32.30, its current intra day low level. From there, it recouped a bit to Rs.32.55 but the mood on the counter remains largely negative.
The sales of scooters in India has slipped down for the first time in 13 years and this is a matter of concern as scooters alone account of 25% of total two-wheeler sales.
Scooters recorded sales of 67 lakh units in FY19, down 0.27% from 67.2 lakh units (YoY). The last time the category had seen a downturn was in fiscal FY06, when it de-grew by 1.5%.
Following this, most of the two-wheeler companies have reported a sharp cut in production.
Society of Indian Automobile Manufacturers (Siam) came out with a grim outlook for the new fiscal. Based on a 2.7% growth in passenger vehicles in FY19, it predicted a growth between 3% - 5% for FY20. Two-wheelers too saw a forecast of 5-7% growth, nearly same as the 5% growth realised in FY19.