Two-wheeler majors eye festive boost to retail sales

Eicher Motors company Royal Enfield's sales volumes dropped by 35.4% to 40, 611 units in October 2021 from 62, 858, recorded a year ago. It exported 3,522 units against 4,033 units, registering a decline of 13%.

By:November 3, 2021 12:06 PM
2021 Royal Enfield Himalayan

Hit by drop in volumes, major two-wheeler makers are betting big on the festival season to drive growth in sales numbers at the retail outlets. Almost all the major two-wheeler OEMs reported lower numbers in October 2021 despatches to dealers compared with the year-ago period, owing to factors such as supply issues, muted rural sentiment and a high base due to inventory filling last year.

Hero MotoCorp witnessed a 33.2% drop in its domestic sales. It could send 5,27,779 units to its dealers in October 2021 against 7,91,137 units in the year-ago period. The two-wheeler major said demand in the festive season has been building up and it expects healthy retail over the coming weeks.

With the economy gradually opening up and several other positive indicators such as encouraging farm activity and surge in preference for personal mobility, it said a swift revival in sales was expected in the coming months. The company exported 20,191 units in October 2021 against 15, 711 units in October 2020, registering a rise of 28.5%.
In a research note, Emkay Global Financial Services said domestic two-wheeler volumes declined notably due to lower retails and a high base last year on account of inventory filling. In addition, chip shortages affected despatches for premium motorcycles.

Honda Motorcycle and Scooter India (HMSI) reported a 20.2% decline in its sales. The company sold 3,94, 623 units in October 2021 compared with 4,94, 459 units in October 2020. On the exports front, HMSI registered a 15% growth with 37,584 units from 32,721 units in October 2020.

Yadvinder Singh Guleria, director, sales & marketing, HMSI, said, “With the much-awaited festival season in progress, we are witnessing a gradual rise in engagement, registering more enquiries from prospective customers with each passing day.”

TVS Motor registered sales of 2,58,777 units in October 2021 against sales of 301,380 units in October 2020, registering a drop of 14.1%. The company said with pandemic restrictions easing and the festive season approaching, it expects the retails to improve significantly in the coming months. Two-wheeler exports registered a growth of 3% with sales of 82,736 units in October 2021 against sales of 80,741 units in October 2020.

In a note, Motilal Oswal said the year-on-year decline in two-wheeler wholesales reflects the weak demand during Navaratri and the upcoming Diwali festive season.

Bajaj Auto reported a 26% decrease in its two-wheeler despatch volumes. It sold 1,98,738 units in October 2021 against 2,68, 631 units in October 2020. The exports of the company stood at 1,92,565 units against 2,01, 659 units, logging a 5% drop.

Eicher Motors company Royal Enfield’s sales volumes dropped by 35.4% to 40, 611 units in October 2021 from 62, 858, recorded a year ago. It exported 3,522 units against 4,033 units, registering a decline of 13%.

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