Jharkhand government proposes to cut petrol price for 2-W segment

News: According to media sources, the Jharkhand government has proposed to cut petrol prices by Rs.25/litre for 2-W commuters starting January 26, 2022.

Views: The move is a welcome step as it potentially lowers the cost of running 2-Ws. This could spur sales of 2-W in the state with current share of domestic sales pegged at ~2.2%. This is positive for 2-W OEMs, particularly Hero MotoCorp (state accounts for ~2.5% of sales) in our coverage universe.

Impact: Positive