Two wheeler sales in the country are likely to decline by 10 percent next year following global slowdown and unfavorable market conditions. It has shown negative growth rate for the month of October with decrease in sales of all leading two wheeler companies.

About 7,248,589 two-wheelers were sold in India for 2007-08 as per the reports of Society of Indian Automobile Manufacturers (SIAM).

The largest two-wheeler maker of the country, Hero Honda registered three percent decline in auto sale. However, the company retailed six lakh units in October. Senior Vice-President of Hero Honda Motors Ltd, Mr Anil Dua said that the company is concerned over current liquidity conditions and high interest rates as both are major deterrent to growth of auto industry.

The chairman and managing director of TVS Motor Company Limited, Venu Srinivasan said that the companies are employing cost cutting measures. They are avoiding fresh recruitments and stressing to increase the performance of existing staff. TVS reported a net profit of Rs.174 mn with sales of 1.17 lakh units in October.

Other auto major, Bajaj auto Ltd reported a 34 percent drop in vehicle sale by selling 1.65 lakh units.