Mumbai: Rural India is seen as the next big growth opportunity for the Indian two-wheeler industry, according to a report by Care Analysis and Research (CARE).
“The penetration level of two wheelers is starkly low in rural areas than in urban areas,” CARE said in its report, which was released here on Thursday.
The penetration level of two wheelers in rural areas is low at 211 per thousand against 644 per thousand in top 20 cities, it said.
Rural areas are witnessing rising income levels and they are least impacted by the current global economic crisis, it found.
On an all India basis, the outlook for two wheelers remains marginally weak for the next 9-12 months. The macro-economic outlook is still weak to some extent, with GDP forecasted to grow by 6.5% in FY10, the slowest since FY03, CARE said.
“Consumer confidence level would also take some time to improve. Furthermore, the players in two wheelers finance industry are still cautious in lending on concerns of delinquencies and easy availability of cheap funds.