Two-wheeler volumes grow 8% in Feb on rural demand

Two-wheeler volumes grew 8% y-o-y in February, the most in three months, at over 1.01 million units following a demand pull from rural pockets and general improvement in consumer sentiment despite continued hikes in auto loan rates and product prices.

Four of India’s top five two-wheeler makers, who make up more than 75% of the sales volume, recorded double-digit growth in February, as per data shared by them.

Hero MotoCorp, India’s largest two-wheeler maker, recorded domestic sales of 382,317 units, a growth of 15% y-o-y. “The volumes in February indicate the continuously improving consumer sentiment and the company expects the positive trend to continue in the coming months, on the back of favourable economic indicators,” Hero MotoCorp said in a statement.

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Honda Motorcycle & Scooter India, the country’s second-largest two-wheeler maker, however, bucked the trend to report a 21% y-o-y decline in volumes in February at 227,064 units. The company did not specify the reason for the fall.

Sales volumes of TVS Motor Company grew 28% y-o-y to 221,402 units, while those of Bajaj Auto increased 25% y-o-y to 120,335 units. Royal Enfield posted a 24% rise in sales to 64,436 units during the reporting month.

Domestic two-wheelers will witness a subdued base till H1FY24, helping them deliver over 10% growth in FY24, according to ICICI Securities.

Data generated by Vahan and Emkay Research showed that electric two-wheeler volumes were nearly stagnant in February at around 65,500 compared to the preceding two months. December and January had clocked volumes of around 64,500 units each.