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Sales Analysis: Two-Wheeler makers report healthy growth in May
NEW DELHI: Two-wheeler industry which has been facing rough weather due to poor rural demand, showed good growth in the month of May. Most two wheelers registered a double-digit growth with sales as compared to May 2015.
According to Honda 2wheeler, the two-wheeler segment is expected to have clocked a sales of 1,732,770 in May as against a sales of 1,594,262 two-wheelers in May 2015.
The net addition in sales is still happening mostly in urban India as compared to rural India. While there is buying in rural market, experts say that sales is still replacement demand and also due to some pent-up demand. "Urban market will drive the demand in the coming quarters as the per-capita disposable income is going up as the average salary increase in about 10 percent in urban areas and the inflation has been about 5 percent," said Kumar Kandaswami, senior director at Deloitte. Clearly, the affordability for buyers is going up.
The fastest growing two-wheeler brand was the Eicher Motor-owned Royal Enfield with sales growth of 37% in May 2016. The company, which in February launched entered the adventure tourer segment with Himalayan, sold a total of 48,604 motorcycles in domestic market as compared to 35,354 units in the same month last year.
Total sales of models with engine capacity up to 350cc grew by 38 percent and stood at 43,217 units. While models with engine capacity exceeding 350cc sold 5,387 units and experienced growth of 31 percent.
Even Yamaha India, saw a good growth in sales of almost similar 36 percent last month. Yamaha Motor reported a domestic sales to 62,748 units in May which is higher than 46,084 units sold in May last year.
Yamaha said that its increasing focus on expanding in tier II and III cities, thus reaching out to larger groups of target population, has been instrumental in boosting sales. The company added that the recently launched commuter bike Saluto RX and scooter Cygnus Ray-ZR have performed well in the month of May.
This is the second consecutive month of good growth for the industry in this financial year.
The top two motorcycle manufacturers in India, Hero MotoCorp and Bajaj, although showed growth, but it was in single digits as against double-digits for their counterparts.
Hero MotoCorp saw its domestic sales grow by just 2 percent to touch 5,83,117 units, up from 5,69,876 units sold in May last year.
The company said that market demand was expectedly subdued in May, due to the heavy retail offtake that happened in April on account of the marriage season and regional festivals in different parts of the country during that month.
However, the company expects the sales to grow in the coming months as a good monsoon, which has been forecast by Indian Meteorological Department, could lead to a change in sentiments in the rural markets and improve sales in second half of the year.
Bajaj Auto, India's second largest motorcycle manufacturer, showed a growth of 9 percent in its domestic sales. The company's total domestic sales stood at 2,04,234 units as against 1,86,614 units during May 2015.
Honda 2Wheelers, on the back of good scooter sales, saw a growth of 18.8 percent in May 2016. The company sold a total of 436,358 units in Mauy 2016 as compared to 367,167 units in May 2015. This includes sales of 147,479 units of motorcycle and 268,423 units of scooters.
TVS Motor's domestic sales growth too hovered around the 18 percent. Domestic two wheeler sales grew by 17.9 percent increasing from 175,533 units in May 2015 to 206,886 units in May 2016.
For TVS too, scooter was the dominant segment as it grew by 20.2 percent increasing from 54,426 units in May 2015 to 65,434 units in May 2016. Motorcycles sales grew by 5.6 percent increasing from 91,344 units in the month of May 2015 to 96,485 units in May 2016.
"Going forward, we should see growth in most segments of two wheelers where some sections will do far better. Scooters and top-end of motorcycles are expected to do really well. As far as lower end of the motorcycles is concerned, if forecast around monsoon comes true then, even that segment will see growth," explained .
Sales Analysis: Two-Wheeler makers report healthy growth in May | ET Auto
NEW DELHI: Two-wheeler industry which has been facing rough weather due to poor rural demand, showed good growth in the month of May. Most two wheelers registered a double-digit growth with sales as compared to May 2015.
According to Honda 2wheeler, the two-wheeler segment is expected to have clocked a sales of 1,732,770 in May as against a sales of 1,594,262 two-wheelers in May 2015.
The net addition in sales is still happening mostly in urban India as compared to rural India. While there is buying in rural market, experts say that sales is still replacement demand and also due to some pent-up demand. "Urban market will drive the demand in the coming quarters as the per-capita disposable income is going up as the average salary increase in about 10 percent in urban areas and the inflation has been about 5 percent," said Kumar Kandaswami, senior director at Deloitte. Clearly, the affordability for buyers is going up.
The fastest growing two-wheeler brand was the Eicher Motor-owned Royal Enfield with sales growth of 37% in May 2016. The company, which in February launched entered the adventure tourer segment with Himalayan, sold a total of 48,604 motorcycles in domestic market as compared to 35,354 units in the same month last year.
Total sales of models with engine capacity up to 350cc grew by 38 percent and stood at 43,217 units. While models with engine capacity exceeding 350cc sold 5,387 units and experienced growth of 31 percent.
Even Yamaha India, saw a good growth in sales of almost similar 36 percent last month. Yamaha Motor reported a domestic sales to 62,748 units in May which is higher than 46,084 units sold in May last year.
Yamaha said that its increasing focus on expanding in tier II and III cities, thus reaching out to larger groups of target population, has been instrumental in boosting sales. The company added that the recently launched commuter bike Saluto RX and scooter Cygnus Ray-ZR have performed well in the month of May.
This is the second consecutive month of good growth for the industry in this financial year.
The top two motorcycle manufacturers in India, Hero MotoCorp and Bajaj, although showed growth, but it was in single digits as against double-digits for their counterparts.
Hero MotoCorp saw its domestic sales grow by just 2 percent to touch 5,83,117 units, up from 5,69,876 units sold in May last year.
The company said that market demand was expectedly subdued in May, due to the heavy retail offtake that happened in April on account of the marriage season and regional festivals in different parts of the country during that month.
However, the company expects the sales to grow in the coming months as a good monsoon, which has been forecast by Indian Meteorological Department, could lead to a change in sentiments in the rural markets and improve sales in second half of the year.
Bajaj Auto, India's second largest motorcycle manufacturer, showed a growth of 9 percent in its domestic sales. The company's total domestic sales stood at 2,04,234 units as against 1,86,614 units during May 2015.
Honda 2Wheelers, on the back of good scooter sales, saw a growth of 18.8 percent in May 2016. The company sold a total of 436,358 units in Mauy 2016 as compared to 367,167 units in May 2015. This includes sales of 147,479 units of motorcycle and 268,423 units of scooters.
TVS Motor's domestic sales growth too hovered around the 18 percent. Domestic two wheeler sales grew by 17.9 percent increasing from 175,533 units in May 2015 to 206,886 units in May 2016.
For TVS too, scooter was the dominant segment as it grew by 20.2 percent increasing from 54,426 units in May 2015 to 65,434 units in May 2016. Motorcycles sales grew by 5.6 percent increasing from 91,344 units in the month of May 2015 to 96,485 units in May 2016.
"Going forward, we should see growth in most segments of two wheelers where some sections will do far better. Scooters and top-end of motorcycles are expected to do really well. As far as lower end of the motorcycles is concerned, if forecast around monsoon comes true then, even that segment will see growth," explained .
Sales Analysis: Two-Wheeler makers report healthy growth in May | ET Auto
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