Printed On Dec 07, 2021 07:00:00 AM
A month-on-month (MoM) comparability signifies gross sales are down by 33 p.c.
On December 1, 4 hours after it launched its wholesales numbers for November, Bajaj Auto, which is presently ranked fourth in India, by way of home market share, introduced that it had develop into the No. 1 bike producer in November – home and export numbers (3,38,000 models) mixed. Hero MotoCorp, which is ranked first in home bike wholesale for November, offered 3,29,185 models.
Month-on-month gross sales down by 33 p.c
High 4 corporations account for main share
Gross sales harm by lack of demand for commuter bikes
Whereas that is statistically true, what the gross sales numbers launched by 5 main two-wheeler OEMs, together with the High 4, reveal is that their cumulative gross sales final month are down sizeably – at 9,50,755 models – mixed gross sales of Hero MotoCorp, Honda Motorbike & Scooter India, TVS Motor Co, Bajaj Auto and Royal Enfield are down 36 p.c 12 months on 12 months (YoY). Prolong the maths to their gross sales within the earlier month, and the information is just not good – a 33 p.c discount in gross sales month-on-month (MoM) (14,20,550 models).
It is a worrying state of affairs for the two-wheeler trade as a result of the High Four gamers by market share (as per April-October information) account for an amazing 88.62 p.c of all the trade – Hero MotoCorp (35.17 p.c), HMSI (25.95 p.c). TVS (14.73 p.c) and Bajaj Auto (12.77 p.c) – with the remaining seven gamers having a single-digit share.
On condition that October numbers themselves have been a 25 p.c decline over final 12 months’s gross sales of 20,53,814 models, November’s MoM decline will certainly have captains of the two-wheeler trade nervous and searching for market-friendly options.
A clue and an advance warning to the poor gross sales in November had come within the third week of October, when seller physique FADA had introduced retail gross sales numbers for the month. On the time, Vinkesh Gulati, president of FADA, had stated, “The 2-wheeler class continues to face the brunt of low gross sales with the entry-level class being the largest spoilsport. The agricultural misery in retail, coupled with frequent value hikes, triple-digit gasoline costs and clients conserving funds for healthcare emergencies stored the demand low. Actually, walk-ins and buyer inquiries have been additionally ultra-lean in the course of the festive interval.”
FADA had stated that two-wheeler stock ranges had reached 40-45 days and are a explanation for nice concern for sellers. It known as upon OEMs to work in direction of bringing down the stock to 21 days whereas additionally urging them to return ahead with engaging buyer schemes to revive rural demand in addition to the entry-level class.
Clearly, the shortage of sustained demand within the entry degree 100-110cc commuter bike class, which offers the majority of the gross sales, is hurting OEM and general trade numbers. Poor gross sales within the entry-level bike market are a results of slackened demand from rural India, the largest shopper of fuel-efficient commuter bikes. What’s extra, with city India nonetheless to return to work in workplaces, potential patrons have deferred their buy selections. Including to the vexing problem of slackened gross sales is that retail finance corporations are a bit extra cautious on the subject of disbursing funds for the entry-level section as in comparison with government or higher-segment bikes.