Two-Wheelers Investors Meet Key Takeaways - Rural Demand Coming Off: Nirmal Bang
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Nirmal Bang Report
We hosted an investor call with Two Wheeler dealers (for Hero MotoCorp Ltd. and Hero Motorcycle and Scooter India) operating in the rural markets to gauge the current demand trends.
They acknowledged that the second round of price hikes taken by the original equipment manufacturers will cushion profitability but believe that the rising cost of ownership (due to BS-VI and raw material inflation) has significantly affected price-sensitive entry-level customers.
Demand has also started to taper off, especially in rural areas.
They remained cautious about the near term demand outlook and expect the entry segment to underperform other categories.
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