Honda Motorcycle and Scooter India (HMSI) expects to log in double-digit volume growth in the ongoing quarter as well as April-June period of the next fiscal year due to the gradual opening of the markets and lower base of last year, as per a senior company official.
December quarter of 2019-20 had witnessed low sales as the industry was transitioning from BS IV to BS VI emission norms while the fourth quarter was hit by the COVID-19-induced lockdown.
"We expect the two-wheeler industry to show at least double- digit growth in the fourth quarter and even from the company perspective we are eyeing a double-digit growth in this quarter."
"With the gradual opening of urban India, scooter demand is also coming back. We are hopeful that the growth will sustain in the first quarter of next fiscal as well,” HMSI Director (Sales and Marketing) Yadvinder Singh Guleria told PTI.
Lower base of last year would also help in attaining growth over the next six months, he added.
Guleria however cautioned that it was hard to predict the future clearly as a lot of uncertainties still lingered in the market.
"There are still lockdowns happening in some of the markets..it is like crystal ball gazing. It is very difficult to predict because all the markets are behaving differently. But in the next six months due to the lower base of last year, the industry will show positive results,” he noted.
When asked if the company was looking to hike product prices due to increase in input costs, Guleria said: "For sure, the rise in commodity prices is putting a lot of pressure on the bottomline. It is not possible to absorb it for a long period. It will ultimately be passed on to the market. But we haven’t decided on the timing yet.”
The company has already increased prices of its products by Rs 700-1,200 in January first week , he added.
On the impact of shortages of various critical components like semiconductors on the company’s production, Guleria said: "So far we have been able to manage. Fortunately there has been no impact on the company’s production so far because of the shortage but we are closely watching.”
The company is working closely with its supply chain partners to manage the situation, he added.