Business Standard: November 03, 2016
New Delhi: Two-wheeler firms expanded sales and helped the industry clock a high single-digit growth rate in October.
Market leader Hero MotoCorp sold over 600,000 two-wheelers for the third consecutive month this year on support from the rural market. Its nearest rival and former partner Honda Motorcycle & Scooter India will announce its numbers on Thursday.
The two-wheeler industry’s sales, including exports, are estimated to have grown 7 per cent in October to 1.42 million. After Honda reports its numbers, sales growth is expected to improve to 9-10 per cent because the company had expanded its capacity early this year.
The industry’s full-year growth rate is expected to be in the double digits against a low 3 per cent last year. Exports make up one-tenth of the industry’s sales.
“Sales crossed 1 million even before Dhanteras day. This has been a record festive season,” Hero said in a statement. The company sold 663,153 two-wheelers in October, up 3.64 per cent from the same month last year.
TVS’ two-wheeler sales increased by 15 per cent to 303,885 in October. Domestic sales grew by 17.6 per cent to 272,229. TVS clocked growth in both scooter and motorcycle sales.
Bajaj Auto, which sells one-third of its two-wheelers outside the country, saw a flat October due to an 11 per cent decline in exports on low crude oil prices and currency problems in many importing nations. Its domestic sales, however, grew five per cent to 212,997.
Japanese two-wheeler maker Yamaha clocked 22 per cent sales growth last month. Commenting on the company’s performance, Roy Kurian, vice-president (sales and marketing), Yamaha Motor India, said, “We reached 86,428 in sales during this festive season.”
Royal Enfield, which commands months of wait for many of its motorcycle models, reported sales growth of 33 per cent last month.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.