Published Paper Details:

The production and sale of Indian two-wheeler automobiles play a crucial role in the automobile market within India. Two-wheeler automobiles constitute, on an average, 79.5% of total automobile sales in the country since 2001. The average number of two-wheelers per 1000 people in India is 31. India is the second-largest two-wheeler market in the world next to China, with annual sales of about 16 million units in 2022-23. A multiple linear regression model has been adopted to examine the impact of macroeconomic variables on demand for two-wheelers. Ordinary least square method is used to estimate the impact of macroeconomic factors after duly taking care of the assumptions of linearity, normality, multi-collinearity, homoscedasticity and autocorrelation to have consistent and efficient estimates of the regression parameters. The regression model initially considers 13 macroeconomic factors as explanatory variables. After dropping certain macro-economic variables which do not satisfy the tests of linearity, normality, multicollinearity, homoscedasticity and autocorrelation, it is found that per capita income, interest rate of borrowing, vale added in retail trade sector and two-wheeler prices have significant impact on the demand for two-wheelers.