In spite of an over 24 percent fall in December sales due to the note-ban impact, the second largest two-wheeler-maker Honda Motorcycle & Scooter India (HMSI) has closed 2016 with best-ever numbers selling close to 5 million units.
"Selling close to 5 million units, we grew 50 percent faster than industry in 2016. While the industry sales fell to an 80-month low in December on demonetisation blues, we grew on a year-to year basis 11 percent or 0.48 million additional units in the year to 4,988,512 units up from 4,508,222 units in 2015, while the industry sales (domestic and exports) grew around 7 percent," HMSI senior vice-president for sales and marketing YS Guleria said.
He also expressed optimism that the company would close the current fiscal year with double digits growth.
"With demonetisation impact ebbing and upcoming festive season, coupled with expectations of a good Budget, we are cautiously optimistic about the March quarter and hopes to close 2016-17 with a double-digit growth," Guleria said.
The company since January has been clocking over 22 percent growth in sales and buoyed by this, HMSI had earlier said it would clock at least 22 percent sales growth in the current financial year. It has contributed to as much as 35 as 35 percent of the incremental volume in the industry.
"The demonetisation impact continued to negatively impact customer sentiment for the second consecutive month in December and the industry closed at an 80-month low of 9.09 lakh units in the December.
"Despite continuing pressure of noteban, we grew over 50 percent faster than industry in 2016 with volume growing by 0.48 million units to 4,988,512 units," Guleria said.
However, its December sales fell 24.4 percent to 2,31,654 units from 3,06,585 units. It said the fall, due to the noteban, would have been higher had it not been for a 66 percent jump in exports to 26,602 units in the month.
A key point on the exports front was over 2,000 Navi exports, he added.
It can be noted that the only two players that added numbers in December were the domestic premium player Royal Enfield which saw its volume jump 42 percent to 57,398 units and Yamaha whose sales rose 28 percent in the month.
While the market leader Hero MotoCorp saw its sales plunging the steepest in the industry at 34 percent to 3,30,202 units, third largest player Bajaj Auto's sales fell 22 percent to 2,25,529 units. Fourth largest player TVS Motor saw its decline 8 percent to 1,84,901 units.
Guleria also said HMSI has been the biggest gainer in the market with adding 1 percent market share. The year also saw HMSI adding more 1.2 million more scooter capacity in Gujarat and its iconic Activa becoming the largest selling two-wheeler in the country for 10 months in the year.
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