Mumbai, Dec 27 (IANS): Credit ratings agency ICRA expects the domestic two-wheeler industry's volumes to grow at 8-10 per cent during FY2019.

According to ICRA, the expected growth rate will be supported by growing per capita income, improved farm sentiment following near normal monsoon over last three fiscal, higher MSP and farm loan waiver in select states.

"The two-wheeler industry has reported a 11.1 per cent Year over year (YOY) volume growth in April-October 2019. This is despite some one-off adverse events during the period increase in insurance premium across the country, floods in Kerala in August 2018 and regulatory changes in West Bengal mandating two-wheeler sale to only valid license holders in July 2018," ICRA said in a statement.

"While increase in rural income would support motorcycle demand; the demand for scooters is expected to be led by rapid urbanisation, increased affordability and greater penetration through targeted product launches."