The wholesale despatches from the two-wheeler companies to domestic market grew by 14% in September, year-on-year, on account of inventory refilling by OEMs, post the supply chain normalisation and preparation of an upcoming festive season. Among the major players, barring TVS Motor, which had flat growth y-o-y and Royal Enfield, which clocked a meagre 2% growth in domestic despatches, all others have reported double digit increase in volumes in September 2020. Motilal Oswal Research, in its note, post the release of the sales numbers by the major two-wheeler makers, wrote that 2W volumes grew by 14% mainly on the back of inventory refilling. While it was a seasonally weak month, OEMs utilised it to refill their inventory on the expectation of a strong festive season. The inventory level now has been increased to 30–45 days at the two-wheeler dealers.
Operating at nearly 100% production capacity with almost all customer touchpoints open, Hero MotoCorp dispatched 6,97,293 units in September 2020 as compared to 6,00, 509 units in September 2019, clocking a growth of 16.11% y-o-y. The company, sequentially, had in August 2020 dispatched 5,68,674 units. In an analysis prior to the auto sales data release, India Equity Research forecast that it expects the upward trajectory to continue in two-wheelers, supported by improving retails and inventory build-up with dealers before the festive period. It had added that the channel checks indicate that retails have improved despite the inauspicious period. With 50% rural share, two-wheelers could disproportionately benefit from an acceleration in rural economy, lower financing cost, fading impact of sharp price hikes and a noticeable shift away from mass transportation, it said.
Honda Motorcycle and Scooter India’s domestic sales zoomed by double digit 10% growth to close at 5,00,887 units in September 2020 as compared to 4,55,896 units in September 19. It exported 25,978 units. Yadvinder Singh Guleria, director, sales & marketing, Honda Motorcycle & Scooter India said, in September Honda recorded a strong 75% surge in test rides and a significant 20% jump in enquiries on month-on-month basis. While the sustained uptick in customer sentiments has boosted the confidence of our network on ground, Honda will cautiously monitor inventory levels in the run up to festivals.”
Bajaj Auto dispatched 2, 19,500 units to dealers in September 2020 as compared to 1,77,348 units in an year ago period, logging a 24% growth. Sequentially in August 2020, the company sold 1,78,220 units. The Pune-based company’s two wheeler exports stood at 1, 85,351 units in September 2020 as compared to 159,382 units in September 2019, registering a growth of 16%, which the company claims of being the highest ever. TVS Motor Company’s domestic two-wheeler despatches registered 2,41,762 units in September 2020 as against 2,43,047 units in September 2019, showing a flat growth. In August 2020, the Chennai-based company had registered 2,18,338 units of wholesale sales. Two-wheeler exports grew by 24% registering sales of 71,570 units in September 2020 as against 57,746 units in September 2019. In September 2020, its motorcycle sales registered 1, 39,698 units as against 1,23,918 units in September 2019. Scooter sales of the company registered 1,03,877 units in September 2020 as against 1,18,612 units in September 2019.
Iconic bike maker Royal Enfield announced sales of 55,910 units in the domestic market in September 2020 as against 54,858 units an year ago period, reporting an y-o-y growth of 2%. In August 2020, it had reported sales of 47,571 units. Royal Enfield recently announced that it will commence local assembly of motorcycles in Argentina in partnership with Grupo Simpa, its local distributor in the country. This will be the first time in Royal Enfield’s modern history that motorcycles will be assembled and produced outside the company’s manufacturing facilities in Chennai.
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