Two-wheeler sales extend recovery; Hero MotoCorp posts 15.5% growth

Domestic two-wheeler sales rose in November at most of the manufacturers on last year’s low base. Some of the uptick is also attributable to the marriage season which usually perks up the volumes in the Northern part of the country.  Combined dispatches at the top five manufacturers rose 17 per cent year-on-year to 1.1 million units.

This is the eighth consecutive month of increase in sales in the world’s largest market for scooters and motorcycles. The recovery comes after the segment—the worst hit by the pandemic and a combination of factors including regulatory changes, slowdown in rural India and incessant price hikes, dragged down sales to a multi-year low.

In November, market leader Hero MotoCorp led the sales chart with a growth of 15.5 per cent over the corresponding period last year. It expects the momentum to build-up in the coming quarters on account of favorable economic indicators, including encouraging farm activity and positive consumer sentiments along with upcoming marriage season, it said in a statement.

Hemal Thakkar, director Crisil Research said the internal combustion engine (ICE) two wheelers have seen some slowdown in momentum post-festive. “The year-on-year growth is largely on account of the low base of last year. Rural part of the story is still catching up and would start looking better from Q1 of FY24. We expect FY23 to end at about 10 per cent growth on a Y-o-Y basis over FY22,” said Thakkar.

Like Hero, Honda Motorcycle—the second largest in the pecking order too is optimistic. Atsushi Ogata, managing director, president & CEO, Honda Motorcycle & Scooter India said, “After a successful festival season, HMSI continues to witness consistent demand in the market.”

There is now a growing need for mobility in urban India as offices, institutions open-up and more and more people venture out, he said. “The industry has been witnessing steady growth momentum and we are on a constant lookout to fulfil the needs of our customers,” he said.