The automobile industry had witnessed zero sales in the month of April when the country saw the rise of the COVID-19 and the resultant lockdown. Since then, public transport has turned out to be a scary adventure and the social distancing norms have forced people to shift towards personal means of transport. The automobile market has already enjoyed a great recovery in the pre-owned vehicle segment. But don’t let this deceive you, the new vehicle purchase is also rising, with the festive season around the corner. This makes us believe that the automobile sector is finally on its path to recovery. This can be seen on the sales and export figures of the country’s top two-wheeler manufactures.
Continuing to strengthen its market leadership, Hero MotoCorp, country’s largest manufacturer of motorcycles and scooters – registered record sales of 715,718 units in September 2020. This is the highest sales in a single month in the calendar year of 2020. This translates into a growth of 16.9% over the corresponding month of the previous year (September 2019), when the company had sold 612,204 units. Despite the disrupted network of components supply chain due to the non-availability of labour and issues with regard to logistics, Hero MotoCorp sold 18,14,683 units in the second quarter (July-September) of the current fiscal (FY’21), clocking a healthy Year-on-Year growth of more than 7.3%. The Company had sold 16,91,420 units in the second quarter of FY’20.
With the peak festival season coming up in the months of October and November, Hero MotoCorp remains cautiously confident of achieving yet another benchmark in post-COVID retail sales with the help of positive consumer sentiments and continued government policy support. To partially offset the rising input costs and commodity prices, the Company has made an upward revision in the ex-showroom prices of its motorcycles and scooters by up to 2%, with the exact quantum varying on the basis of the model and specific market. The revised prices are effective from October 1, 2020.
Honda Two-Wheelers India:
Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI) closed September with positive sales growth for the second consecutive month in FY’21. After breaching the 4 lac unit-mark in total sales in August’20, Honda’s total sales breached the 5 lac units sales threshold in September’20. Boosted by new models and an uptick in customer sentiments, Honda’s YoY domestic sales zoomed by double-digit 10% growth to close at 500,887 units in Sep’20 (compared to 455,896 units in Sep’19). With additional 25,978 units’ export, Honda clocked total sales of 526,865 units in Sep’20 (vs. 485,663 unit total sales in Sep’19).
After crossing 5 lac sales mark with double-digit domestic growth, Mr Yadvinder Singh Guleria, Director – Sales & Marketing, Honda Motorcycle & Scooter India Pvt. Ltd. commented on the preparations for festival season, “In September, Honda recorded a strong 75% surge in test rides and a significant 20% jump in enquiries on a month-on-month basis. While the sustained uptick in customer sentiments has boosted the confidence of our network on the ground, Honda will cautiously monitor inventory levels in the run-up to festivals. Adding new excitement in the market and stimulating demand are our 2 brand new models. We will delight our customers with new attractive retail finance offers with up to 100% loan value and low down-payment scheme. Coupled with Honda’s secured online booking platform and all-new H’ness CB 350, Honda is turbo-charging the retail environment ahead of the festive season.”
TVS Motors India:
TVS Motor Company registered a sales growth of 14% in September 2020 with 327,692 units as against 287,398 units in August 2020. The company registered sales of 327,692 units in September 2020 as against 315,796 units registered in the month of September 2019. Production during September was much higher despite continued challenges in the supply chain due to COVID-19. The total two-wheelers registered sales of 313,332 units in September 2020 as against 300,793 units in September 2019. Domestic two-wheeler registered sales of 241,762 units in September 2020 as against 243,047 units in September 2019. Motorcycle registered sales of 139,698 units in September 2020 as against 123,918 units in September 2019. Scooter sales of the Company registered 103,877 units in September 2020 as against 118,612 units in September 2019.
The Company’s total exports also grew by 19% registering sales of 85,163 units in the month of September 2020 as against 71,569 units in September 2019. Two-wheeler exports grew by 24% registering sales of 71,570 units in September 2020 as against 57,746 units in September 2019. During the second quarter of the current financial year, two-wheelers posted sales of 8.34 lakh units as against sales of 8.42 lakh units in the second quarter FY19-20. Three-wheeler of the Company registered sales of 0.33 lakh units in the second quarter of the current year as against 0.43 lakh units in the second quarter of FY19-20.
Suzuki Motorcycle India:
The Japanese two-wheeler manufacturer sold 71,661 unit in September 2020. This translates into a sequential month on month growth of 23.7 per cent in September 2020. Out of the total sales, Suzuki sold 65,195 units in the domestic market, whereas 6,466 units were exported in September 2020. Suzuki Motorcycle India has registered a year-on-year growth of 2.86 per cent in September 2020, for its domestic sales figures.
Koichiro Hirao, Managing Director, Suzuki Motorcycle India Pvt Ltd., said, “We feel proud to see a double-digit sequential growth of 23.7% has helped us almost reach pre-COVID sales numbers. We have already witnessed an increased demand for our products that have been driven by signs of early festive kick-off with Onam and Ganesh Chaturthi. We are optimistic about the upcoming festive season, which is considered auspicious for new purchases. Today we have launched new exciting liveries for Gixxer 250 and Gixxer series. We are confident that new launches will propel our growth trajectory and help us achieve last year’s sales numbers in H2.”
After a loss of 30% of global sales in the first eight months of 2020, Royal Enfield posted a sale of 60,041 motorcycles in the month of September 2020, against the sales of 59,500 motorcycles for the same month last year. Europe is the second more relevant region for this manufacturer and after 8 months is up 3.9%. Sales are growing in ASEAN (+14.1%, preliminary), LATAM (+22.1% preliminary) and North America (+21.5% preliminary). In all these regions, Royal Enfield growth is spectacular and represent a sharp gain in terms of market share.
Bajaj Auto registered its high ever exports in September 2020, with 1,85,351 units sent overseas. In comparison to the exports from the previous year, the company recorded a growth of 16 per cent. The company’s domestic two-wheeler sales for September 202 was 2,19,500 units of Bajaj two-wheelers, compared to the 1,77,348 units in September 2019, this gives Bajaj Auto, a year on the year growth rate of 24 per cent. However, even after such a wonderful performance, the company is still on the path of recovery, and sold only 9,231 units of CVs last month, registering a decline of 76 per cent as compared to figures from September 2019, when it sold 38,153 units. The company also exported 27,224 units last month, which is nearly the same as its CV exports in September 2019.