Retail sales of two-wheelers fell 7 per cent in April from a year ago.

According to the Federation of Automobile Dealers' Association (Fada), sales fell because of the on-board diagnostics 2A shift, untimely rains and pre-buying in March.

Besides, weak rural sentiments contributed to depressed demand in the motorcycle segment.

Two-wheeler sales have still failed to reach pre-Covid levels: sales in April 2023 are still down 19 per cent from April 2019 sales, whereas car sales have crossed that level.

Fada has urged the GST Council to consider reducing GST on two-wheelers from 28 per cent to 18 per cent to help revive this vital segment, which represents 75 per cent of total auto sales volume.

Fada president Manish Raj Singhania said: "FY-2024 began on a subdued note, with the month of April experiencing a 4 per cent YoY overall decline. The two-wheeler and passenger vehicle categories experienced YoY degrowth of 7 per cent and 1 per cent, respectively."

Regarding the two-wheeler segment outlook, Singhania felt the upcoming marriage season in May is expected to bring about a sales resurgence, driven by an increase in customer inquiries.

Besides, customers are increasingly considering transitioning from internal combustion engines (ICE) to electric vehicles, which may temporarily delay purchasing decisions.

High demand for e-rickshaws has fuelled growth in three-wheelers, which have surpassed pre-Covid levels.