Two-wheeler sales seem to be making the most of the festival fervour, with all the three heavyweights reporting healthy month-on-month growth for October.
But the count’s still short year-on-year
NEW DELHI: Two-wheeler sales seem to be making the most of the festival fervour, with all the three heavyweights reporting healthy month-on-month growth for October.
Hero Honda reported the highest ever monthly two-wheeler sales at 3,65,022 units, but still showed almost flat growth on a year-on-year basis (3,63,480 units). However, a comparison with September sales (3,14,567 units) shows a substantial 16% increase.
Similarly, Bajaj Auto reported a 1% decline at 2,48,307 units (2,51,022 units) year-on-year, but showed a 20% growth on a sequential basis (2,06,208 units).
TVS Motor also reported 9% decline year-on-year at 1,29,614 units (1,42,325 units), but a 13% growth on a sequential basis.
Does this then signal the beginning of a turnaround for these two-wheeler makers, all of whom have seen sharp sales declines for much of this fiscal? Analysts are cautious and advise a wait-and-watch approach till the end of this quarter.
Interestingly, the big daddies cite different reasons for the robust month-on-month growth. Hero Honda attributes it to its strategy of refreshing the product range, while Bajaj Auto MD Rajiv Bajaj owes it to the “success” of the 125cc XCD.
Going by analysts, since much of the incremental sales are on account of hefty discounts and the fact that the auspicious ‘Navratra’ festival was celebrated for almost a third of last month, the sales momentum could decline somewhat in November as Diwali would be over before the mid-month.
But, with the marriage season commencing thereafter, sales could continue to do well provided attractive discounts are handed out.
Also, new products being launched should help build excitement: Hero Honda has already come out with its 150cc Hunk and Bajaj its 125cc XCD, while TVS will mark its entry into the 125cc segment with the Flame next month.
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