FADA has requested all two-wheeler manufacturers to introduce special schemes for customers especially in the entry-level (up to 125cc) segment
Two-wheeler segment in the Indian auto industry unlike other segments has witnessed a YoY decline in sales. In comparison to 10,33,895 two-wheelers sold in September last year, only 9,14,621 units were sold during September this year. This resulted in a YoY decline of 11.54 percent.
FADA has stated that the slow growth in sales could be attributed to skyrocketing fuel prices and drop in purchasing power. Consumers, especially for the entry-level segment in rural India, are keeping themselves away from fulfilling their mobility needs. It has led to a decline in sales volume in the entry-level segment of two-wheelers as well.
Slow growth in entry-level segment
This segment’s performance is now becoming critical for the overall two-wheeler to come back on the path of recovery. Moreover, semiconductor chip shortage has also started impacting the 150+ cc segment of motorcycles. However, the good thing to note is that dealership inventories have risen up to 30-35 days as dealers are pinning their hopes on a fruitful festive season.
In the first half of the current fiscal FY2021 (April – Sept 2021), a total of 52,31,441 two-wheelers have been dispatched by OEMs across the country. During the same period last year, a total of 41,12,656 units were sold which has resulted in YoY growth of 27.20 percent. This is because during the same period last month, the country was severely reeling from the effects of the Covid-19 pandemic which had adversely affected every industry.
Two Wheeler Retail Sales Sep 2021 – Hero, Honda Lead
The biggest contributors to two-wheeler sales volume in September 2021 were Hero MotoCorp, Honda, TVS Motor and Bajaj Auto. While Hero generated a sales volume of 2,75,882 units last month, Honda stood at the second spot with 2,40,527 units.
| Two-Wheeler OEM | SEP’21 | SEP’20 |
|---|---|---|
| 1. Hero | 2,75,882 | 3,47,504 |
| 2. Honda | 2,40,527 | 2,65,615 |
| 3. TVS | 1,40,549 | 1,59,239 |
| 4. Bajaj | 1,16,252 | 1,23,742 |
| 5. Suzuki | 45,617 | 41,420 |
| 6. Yamaha | 40,044 | 44,919 |
| 7. Royal Enfield | 32,913 | 42,489 |
| 8. Hero Electric | 6,289 | 993 |
| 9. Vespa / Aprilia | 3,729 | 3,442 |
| 10. Okinawa | 3,264 | 552 |
| 11. Jawa | 2,390 | 2,194 |
| 12. Ather | 2,161 | 265 |
| 13. PURE EV | 1,337 | 104 |
| Others | 3,667 | 1,417 |
| Total | 9,14,621 | 10,33,895 |
TVS registered a monthly volume of 1,40,549 units whereas Bajaj dispatched 1,16,252 units to dealerships across the country last month. Japanese bikemakers Suzuki and Yamaha occupied the fifth and sixth spots with 45,617 units and 40,044 units sold respectively. Royal Enfield dispatched 32,913 bikes last month.
Electric two-wheeler manufacturers such as Hero Electric and Okinawa also marked their presence with a sizeable sales volume of 6,289 units and 3,264 units. Both brands have shown significant YoY growth from 993 units and 552 units registered in September last year respectively.
Road ahead for OEMs
While there are plenty of challenges to be faced by OEMs in the coming months, there are some positives that come as a relief. The vaccination program has gained momentum in the last few months which has negated the chances of a speculated third wave of Covid infections in near future.
Further, with offices and educational institutions opening up in a phased manner, a marginal recovery process to begin in the two-wheeler space is anticipated. Hence, FADA has requested all two-wheeler OEMs to roll out special promotions schemes so that it can springboard two-wheeler retails for a faster recovery.
Source: Bike - rushlane.com
