According to the latest reports based on the two-wheeler industry, rural India emerges as the top most and the most promising market amongst all. However, the auto manufacturers do not have enough market penetration in these areas. "The penetration level of two wheelers is starkly low in rural areas than in urban areas," Care Analysis and Research (CARE) said in its report.
Market penetration in the urban cities is 644 per thousand where as it is only 211 per thousand in the rural areas. There is considerable rise in the income levels in tier-three cities as well as rural towns as they have remained least affected by the global downturns.
As per the recent estimates the market outlook remains only feebly weak for next 9-12 months as the consumer level will take some time to build up to return to the market. Furthermore, the players in two wheelers finance industry are still cautious about easy availability of cheap funds.