The two-wheeler industry faced a challenging November with demonetization impacting demand in the lean month after the festive high ending October 2016. However, bucking the overall -5% de-growth in the industry. Honda 2Wheelers successfully closed the month with steady sales of 325,448 units.
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Speaking about the sales, Y.S. Guleria, Senior Vice President – Sales and Marketing, Honda Motorcycle and Scooter India said that the two-wheeler sales dropped by 50% in the first three-four days of announcement of the demonetization. But Honda’s all India sales returned to almost 80% of normal level with South, West and East leading the recovery.
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He further added that strategically, Honda hedged its business by increased exports focus. At the same time, networks right up to rural areas extensively started building PoS (Point of Sale) infrastructure & promoted online payment gateways leading to slight recovery towards end of November 2016. Looking ahead, Honda 2wheelers remains cautious on recovery forecast next month as December is traditionally a lean sales month.
Honda 2Wheelers sold a total of 325,448 units in November 2016 against 326,466 units in corresponding month last year. The key standout for November 2016 was the start of full-fledged exports of Honda DIO from fourth plant in Gujarat and NAVI exports starting to new market of Sri Lanka. As a result, Honda 2Wheeler exports increased a sharp 81% from 14,391 units (in November’15) to 26,053 units (in November’16) with neighbouring countries and Latin America leading the demand.