Source: Business Standard, Jul 04, 2017
Two-wheeler makers had a different ride from car manufacturers in June. Against a double-digit decline in sales volume for passenger vehicles, most two-wheeler makers clocked growth. The June performance was led by the country’s biggest two-wheeler maker, Hero MotoCorp.
Hero, TVS, Royal Enfield, and Suzuki reported strong double-digit growth in sales volume for June. Price cut due to GST roll-out from July is expected to expand the market further.
Hero MotoCorp, which sells every third two-wheeler in the country, reported a growth of over 13 per cent in sales volume. Its motorcycle sales volume surged 13 per cent to 547,185 units while scooter volume rose 22 per cent to 77,000 units for June. Its stock rose more than two per cent to Rs 3,777 on BSE. The company said growth in motorcycles was supported by wedding season demand.
Its closest competitor and former partner Honda clocked four per cent growth in sales volume to 444,713 units. The company is the country’s second-largest two-wheeler player. Numbers for Hero and Honda include exports.
TVS Motor, the third-largest two-wheeler maker, saw its domestic sales volume rise over 10 per cent to 228,518 units for June. Scooters’ domestic sales volume grew 34 per cent to 90,448 units while motorcycles expanded 17 per cent to 112,146 units. Bajaj Auto’s domestic sales slipped 36 per cent to 108,109 units for June. Royal Enfield saw 25 per cent growth for June.
“Healthy demand due to the ongoing marriage season coupled with upbeat rural sentiments due to projections of a normal and well spread monsoon for the second consecutive year led to growth,” said Bharat Gianani, research analyst (auto and auto ancillaries) at Sharekhan.