1. Festive season motorcycle sales see tepid growth

Festive season motorcycle sales see tepid growth

Retail sales of motorcycles during the festive season saw single digit growth and were below expectations – as rural customers are expected to start buying once the harvesting season of kharif comes to an end.

By: | Mumbai | Published: November 17, 2016 6:27 AM

Retail sales of motorcycles during the festive season saw single digit growth and were below expectations – as rural customers are expected to start buying once the harvesting season of kharif comes to an end. According to dealers, the retail sales of motorcycles – especially the economy segment – saw single digit growth in retail volumes as the revival of demand in rural market is yet to take place and customers are shifting from economy segment motorcycles to scooters in urban markets.

On the other hand the scooter segment saw 20 – 25% jump in retail volumes till Navratri according to dealers of Honda two-wheelers (HMSI). Apart from market leader HMSI, dealers of Hero MotoCorp and TVS also saw good increase in scooter sales.

According to dealers, inventory of the motorcycles were at record high as they were expecting a healthy growth in retail volumes during Diwali. Most of the motorcycle manufacturers have been pushing inventory with dealers since the last two months in expectation of good festive sales on the back of good monsoon.

“As per management, the motorcycle industry volume growth during the festive season has been in single digits and lacks euphoria. However, this was on expected lines for them as they were not expecting benefits of Pay Commission/strong monsoons to lead to strong volumes,” said Credit Suisse in a report on Bajaj Auto.

“Motorcycles volume growth are in single digit as farmers in UP and Punjab are busy harvesting kharif crop. Once that is done we expect huge push in the retail volumes. Due to extended monsoon in Maharashtra and Gujarat harvesting season got delayed a bit which also impacted the motorcycles volumes in the months to come,” added Yadhvinder Singh Guleria, senior vice president, sales and marketing, HMSI.

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