Motorcycle and scooter makers recorded their biggest monthly growth this year in October, with dealers putting repeat orders to cater to the rising retail demand.
Barring Eicher Motors-controlled Royal Enfield, India’s top six two-wheeler makers – Hero MotoCorp, Honda, Bajaj Auto, TVS Motor, Suzuki and Yamaha – reported an increase in domestic sales in October.
The seven companies, which control nearly 100 percent of the domestic market, reported 17 percent increase in sales during October to 2.04 million units, compared to 1.74 million units sold in the same month last year.
These are wholesale vehicle dispatches from companies to dealers and not actual retail sales to customers. Retail sales data will be disclosed by the dealer’s lobby body in the next few days.
Strong retail sales during Navratri and Dussehra were the primary reason behind the uptick in volumes during October. Additionally, market watchers attribute the increase to the tendency of dealers to build up inventory to meet demand during the Diwali period. Consumer offers, cheaper loans, and new launches also helped push sales.
Hero MotoCorp, the country’s biggest two-wheeler maker, recorded 35 percent increase in volumes in October at 7.91 lakh units, compared to 5.86 lakh units recorded in the same month last year. This is one of the highest monthly sales clocked by the leader of budget bike segment.
“In the first ten days of the festive period, we have registered 96 percent of last year's sales. The enquiries moving forward are very encouraging, and we are confident of a good festive season. Semi-urban and urban are getting on the trend," Niranjan Gupta, CFO, Hero MotoCorp told to analysts.
Honda Motorcycle and Scooter India (HMSI), the country’s second largest two-wheeler maker reported the slowest growth among the top four two-wheeler makers. HMSI wholesale volumes grew just 1 percent in October to 4.94 lakh units as compared to 4.87 lakh units posted in the same month last year.
Chennai-based TVS Motor Company, the third largest domestic two-wheeler player, recorded 19 percent growth in volumes during October to 3.01 lakh units as against 2.42 lakh units sold in the same month last year.
Pune-based Bajaj Auto recorded the second slowest growth in sales during October among the top four companies though the company said that at 1.7 lakh units the Pulsar range saw its best-ever monthly sales performance. The maker of Avenger cruisers Bajaj recorded 11 percent growth in October sales to 2.68 lakh units as against 2.42 lakh units recorded during the same month last year.
Royal Enfield was the only two-wheeler maker that recorded a drop during October. The maker of motorcycles like Classic 350 and Himalayan posted a fall of 7 percent in domestic volumes to 62,858 units during the month as against 67,538 units clocked in the same month last year.
On October 29, Royal Enfield issued a press release stating it had sold 3,700 bikes in Maharashtra during the festive 10 days, including 1,200 bikes in Mumbai on Dussehra.
“There has been a steady demand in the market and the momentum is continuing. The booking levels are encouraging and a promising sign for the upcoming months. While there was some pent-up demand in the market, the recent business recovery and steady sales figures could be safely attributed to the fresh demand being generated," Royal Enfield had said.
The other two Japanese two-wheeler makers, Suzuki and Yamaha, recorded 2 percent and 31 percent increase, respectively in October sales.