Motorcycle sales in the ongoing festive season so far are below expectations as demand is muted and the industry will be lucky if it sees 3-5 per cent growth compared to last year, Bajaj Auto Executive Director Rakesh Sharma said on Wednesday.
While there are still about 15 more days to go for the festive sales this month, he said as a result of muted growth in motorcycles, the overall growth prospects of the two-wheeler industry could also be impacted for the full fiscal.
"The responses in the motorcycle industry are a little bit muted in the sense that we thought that about 6 to 8 per cent growth will be there in the festive period, but it is not that much. It is 1-2 per cent, almost very similar to last year, same period," Sharma told reporters in an earnings call.
The expectations were that by Dussehra the growth would be at about 6 to 8 per cent, he added.
"There are still 15 days. We have noticed a lot of times that demand can become very compressed, and can surprise us even over a couple of weeks, but I don't think it will be high digits, 8 per cent or so…We will be lucky if we see 3-5 per cent growth for the industry in this festive season over last year's," Sharma said.
While sales in South and East have sort of declined, central areas such as Uttar Pradesh have done well in terms of motorcycle sales.
When asked about the reasons for the decline in motorcycle demand, Sharma said, "It is very difficult to pinpoint at this point of time…We will have to wait for the dust to settle and for the cycle to complete, and then analyse and see what's happening out there." However, he said there are various types of reports coming regarding "disruption due to delayed monsoons, a little bit of election here and there" and issues in the North East which is a good two-wheeler market.
"Fundamentally, I don't see anything broken in the system. It is very difficult at this point of time to identify one macro reason, or a couple of macro reasons, to explain this little trough, which the industry finds itself in," Sharma said.
On the overall growth prospects of the two-wheeler industry, he said, "We had said the industry could grow in the 5-8 per cent range. I would still say maybe not 8 per cent but probably closer to 5 per cent."
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