Sales of two-wheelers are picking up pace

Key Indian two-wheeler companies have witnessed growth in sales both year-on-year and year-on-year. This may indicate an improvement in people’s buying sentiments or even latent demand.

However, with schools and colleges reopening and people returning to office, these numbers could rise. Two-wheeler companies continue to struggle with chip availability for their high-end models. In the coming months, the performance of the monsoon will play a key role in determining demand, as heavy rains boost agricultural activity in rural areas and increase farmers’ incomes. There is also concern about the rise in Covid cases in major cities, but whether this will affect demand remains to be seen.

Hero MotoCorp: 463,210 units / 6 percent
Hero MotoCorp sold 463,210 units, up 6 percent in June 2022 from last year’s sales of 438,514 units. The numbers were down 1 percent in monthly sales. Exports amounted to 21,657 units against 30,646 units in June 2021. A total of 461,421 motorcycles and 23,446 scooters were sold in June 2022.

The company said the volume growth is indicative of continued improvement in consumer sentiment, and the company expects the positive trend to continue in the coming months on the back of a decent monsoon and boost in agricultural activity. Sales of motorcycles and scooters in June stood at 4.85 lakh units (including exports), up 3.3 percent from the corresponding month of FY21 when 4.69 lakh units were sold. Hero MotoCorp has also introduced the new Passion ‘XTec’ packed with features like segment-first LED projector headlamp, fully digital dashboard with Bluetooth connectivity, SMS and call alerts, real-time mileage indicator, low fuel indicator, side stand engine shutdown and service reminder.

Bajaj Auto: 125,083 units / -20 percent
Bajaj Auto’s motorcycle sales in the domestic market stood at 125,083 units in June compared to 155,640 units in June 2021. However, June exports increased significantly to 190,865 units compared to 154,938 vehicles exported in June 2021, an increase of 23 percent. Year-to-date analysis shows that Bajaj Auto’s domestic motorcycle sales in the first quarter of this year stood at 314,418 units compared to 342,552 units sold in the same period last fiscal. Sales figures show that demand for entry-level bikes is yet to recover and the two-wheeler market is also feeling the impact of a significant decline in demand in rural areas. Now producers are pinning their hopes on good monsoons, which will boost rural activity.

Motorcycles & Scooters Honda India: 355,560 units / 67 percent
HMSI sold 355,560 units compared to 212,453 units in June 2021. That’s a staggering 67 percent year-over-year sales increase. On a month-over-month basis, the company’s sales rose 11 percent in June 2022 with total sales of 320,844 units. A total of 383,882 units were sold in June, including 28,322 for export. Atsushi Ogata, managing director, president and CEO, said: “The growth expectations we set at the beginning of FY23 are gradually becoming a reality. The timely arrival of monsoons had a favorable effect on economic indicators. We expect this upward trend to continue in the coming months as more customers look to two-wheeler mobility options.”

TVS Motor Company: 193,090 units / 33 percent
TVS Motor Company’s domestic two-wheeler registered a growth of 33 percent at 193,090 units sold in June 2022. The company sold 145,413 units in June 2021. Total two-wheeler sales increased by 23 percent with sales of 293,715 units in June 2022. the company’s sales in May amounted to 191,482 units. TVS’s domestic two-wheeler sales include the electric iQube, which headed home to 4,667 buyers. “This is the highest ever sales volume for TVS iQube Electric, and sales are up 77 percent for May 2022,” the company said.

While motorcycles registered sales of 146,075 units, scooter sales stood at 105,211 units in June 2022. On the export side, the figures are up 9 percent from 92,679 units in June 2021 to 100,625 units in June 2022. TVS said shortage of semiconductor supply has affected production and sales of premium two-wheelers. It continues to work with alternative sources and makes every effort to improve supply. With some improvement in chip shipments, the company said it is optimistic volumes will return to normal levels.

Royal Enfield: 50,265 units / 40 percent
Royal Enfield has sold 50,265 units in the local market, a 40 percent year-on-year growth compared to June 2021 sales. Its number a month ago was 35,815 units. June numbers were down 6 percent from May 2022’s 53,525 units. Including exports, the company sold 61,407 units, which includes exports of 11,142 units. The Chennai-based manufacturer also recently made a key appointment to YS Guleria, formerly of HMSI, as Chief Commercial Officer. He will be responsible for the development of the RE business in India and abroad.

Suzuki Motorcycle: 52,929 units / 31 percent
Suzuki Motorcycle India’s (SMIPL) domestic sales increased by 31 percent year-on-year. The June figure was 52,929 units versus 40,474 units for the same period last year. In terms of sales for the month, SMIPL had a negative growth of 13 percent. In May 2022, 60,518 units were sold. Exports were 15,089 units compared to 9,188 units in June 2021. The company also recorded a 37 percent increase in total sales. (68,018 units in June 2022)