2-wheeler stocks in top gear as chip woes ease; EV transition key: Analysts

Two-wheeler (2W) companies are witnessing a positive upturn as chip shortage eases, and production levels return to normal levels on healthy demand. The pick-up in rural sales on the back of improved crop prices, too, is boosting demand for two-wheelers across India, believe analysts.

Going forward, analysts expect 2Ws to reflect strong volumes in Q2FY23 amid strong pent-up demand, and improved mobility in June quarter 2022 (Q1FY23).

"Several factors like the reopen theme, uptick in demand, and improved mobility are expected to drive demand for 2Ws. We expect the 2W segment to perform at par with the four-wheeler (4W) space