Two-wheeler major Honda Motorcycle & Scooter India expects robust growth in the domestic industry for the current fiscal as the rural market is showing sings of recovery.Speaking to Fe, Yogesh Mathur, director, sales and marketing, HMSI, said various government initiatives clubbed with easy financing options have enabled the two-wheeler industry to experience growth across regions both in urban and rural markets.
In FY24, overall two-wheeler, sales were up 13.3% at 17.9 million units on a year-on-year basis, according to Society of Indian Automobile Manufacturers data.On its part, the company reported a growth of 12% in overall sales (domestic and exports) to 4.8 million units during the year.
“We have witnessed good momentum in the two-wheeler segment due to favourable macroeconomic conditions, an improvement in the rural market, and stronger sales over the festive season,” Mathur said.
He said that the company’s strategic foray into the 100cc segment with ‘Shine’ has helped it reach a wider audience.Mathur said that the industry has witnessed an increase in sales volume of two-wheelers, including heightened demand from rural markets, due to an increase in personal mobility needs as well as good cash flow due to normal rainfall and crop harvest.
On the premiumisation trend, he said that there has been a gradual increase in the preference for premium motorcycles, which is driven by several factors like increasing disposable incomes, younger buyers, and a change in consumer lifestyle.The company plans to launch its first flex-fuel vehicle, this year. Flex-fuel two-wheelers are adapted versions of existing vehicles capable of running on both pure gasoline and ethanol-blended gasoline.
