Retail two-wheeler sales down nearly 29 per cent in August over last year
Among the top four players in the two-wheeler category, Hero MotorCorp and TVS Motor have increased their market share, while Honda and Bajaj Auto have slipped in August, 2020
According to the Federation of Automobile Dealers Associations (FADA) Hero MotorCorp sales dropped to 3,28.068 units from 4,28,227 units, while company’s market share rose to 36.50 per cent from 33.97 per cent. TVS Motor’s market share increased to 15.57 per cent from 15.11 per cent, while sales dropped to 1,39,936 units from 1,90,520 units, a year ago.
Honda’s market share dropped to 24.87 per cent from 26.31 per cent. The Japanese automaker reported a sales of 2,23,496 units as compared to 3,31,673 units, a year ago. Baja Auto market share also dropped to 11.13 per cent from 12.51 per cent, while sales dropped to 1,00,072 units from 1,57,697 units.
Yamaha Motor India also saw its market share go up to 3.99 per cent from 3.67 per cent, however its sales went down to 35,878 units from 46,209 units.
Royal Enfield’s market share rose to 3.91 per cent from 3.86 per cent, while its sales decreased to 35,105 units from 48,627 units.
Overall the two-wheeler segment degrew by 28.7% in August, 2020 to 8,98,775 units from 12,60,722 units in August, 2019. However on a month-on-month (MoM) basis, the drop in August was 11.5 per cent.
ALSO READ: Hero MotoCorp reports 8% rise in 2-wheeler sales, others wait for revival
According to CARE Ratings, the consumer demand which could not be met in April, May 2020 and initial days of June 2020 due to the nationwide and various state lockdowns is expected to be spread across the next 6 months – from July to December 2020 (except some days of September due to the inauspicious Shraadh period, coupled with Adhik maas).
The upcoming wedding and festive season – October 2020 onwards – will elevate demand, as this is the time of the year when consumers usually make purchases of large ticket size. Most automobile dealerships across the country have reopened their stores and there is low anticipation of another lockdown in future.
In an attempt to revive the economy, the government is gradually allowing movement and gathering of people in larger numbers. Also, more number of employees are allowed to report to their office work stations and hence reduce the practice of working from home. This is expected to lead to a growing preference for commuting in personal vehicles rather than using public mode of transport and uplift demand for two-wheelers and passenger vehicles.
“As macroeconomic numbers continue to disappoint, reaching pre-Covid level is unlikely in FY21. While volume pickup is expected in H2FY21, full demand recovery is not expected until at least FY22. The two-wheelers, passenger vehicles and tractor segments shall witness faster recovery than the rest,” according to CARE ratings.
