The poor performance comes on the back easing on lending norms by banks which was also one of the primary concerns of the two-wheeler buyer
The downward trend in India's two-wheeler market continued in November as well, with five of the top six manufacturers in the segment recording a fall in domestic volumes. The industry reported collective sales of 1.36 million units during the month, a fall of 13.5 percent as compared to 1.57 million units sold during the same month last year.
Hero, Bajaj, TVS, Honda and Royal Enfield recorded fall in volumes in November while Suzuki bucked the trend posting a growth. The poor performance of these players comes on the back of the easing of lending norms by banks, which was a key concern of two-wheeler buyers.
India’s two-wheeler market leader Hero MotoCorp barely managed to keep its neck ahead of its recent historical monthly average. The Delhi-based company sold 505,994 units in the domestic market, marking a fall of 16 percent over 601,045 units sold in the same month last year. Hero has consistently sold over 500,000 units every month since the past several quarters which had become its benchmark of performance.
“Hero MotoCorp has scaled up the production of its BS-VI vehicles, while discontinuing the production of several BS-IV models in an effort to migrate completely to the new emission era. The company has stopped production of more than 50 variants of its BS-IV range of products while increasing the production of BS-VI vehicles, the company said in a release.
Honda Motorcycle and Scooter India (HMSI), the country’s second largest domestic player, recorded a 5 percent drop in volumes which stood at at 373,250 units in November this year as against the 394,241 units sold in the same month last year. The Activa-maker was hit by a tool-down strike at one of its plants in November, which affected production.
Pune-based Bajaj Auto recorded a 14 percent decline in domestic two-wheeler volumes to 176,337 units in November as against 205,259 units sold in the same month last year. The second largest two-wheeler maker is now gearing up to launch its first all-electric vehicle Chetak in January.
Eicher Motors-owned Royal Enfield saw a slide of 10 percent in domestic volumes to 58,292 during November as compared to 65,026 units sold during the same month last year.
TVS Motor Company, the fourth largest two-wheeler in India, recorded 27 percent fall in volumes during November to 191,222 units as compared to 260,253 units recorded in the same month last year.
In a release, the Chennai-based company said, “Shifting of Diwali season to the earlier month and planned adjustment of BS-IV stocks is reflecting in the sales growth difference between November 2018 and November 2019.” However, Suzuki Motorcycles India bucked the trend yet again, becoming the only company to report growth in the month. The maker of Access scooter closed the reporting month with sales of 15 percent at 60,855 units as against 53,058 units.Koichiro Hirao, Managing Director, Suzuki Motorcycle India, said, “Suzuki’s maintained momentum of accelerated growth post festive season as well. This month we also forayed into pre-owned two-wheelers business with the launch of ‘Best Value’ showrooms in Bangalore, Aizawl and Surat. This will enhance Suzuki’s participation in the entire life cycle of the products.”LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.