 "After festival inventory buildup, two-wheeler dispatches fall in November")
Major two-wheeler (2W) manufacturers in India witnessed a single-digit decline in domestic sales in November after dispatches had picked up in October for the festive season when wholesales went up by 14 per cent and retail also grew by 36 per cent. Leading two-wheeler manufacturers Hero MotoCorp, Bajaj Auto, and Royal Enfield recorded a decrease in domestic sales, ranging between 4 per cent and 7 per cent, compared to November 2023.
Among major players, TVS Motor Company registered a 6 per cent growth in domestic two-wheeler sales, driven by strong demand for scooters and electric vehicles.
"The mixed performance in November reflects OEMs (original equipment manufacturers) realigning their inventory after the festive period. While domestic sales faced headwinds, the overall outlook for two-wheeler sales remains cautiously optimistic," said Anurag Singh, managing director at Primus Partners. "The two-wheeler segment saw strong retail growth during the festive season, and year-to-date (YTD) sales from April to November are positive," Singh said.
The segment was driven by a strong festive season and record-breaking sales in October. Retail sales during Festive-2024 (October 3 to November 13) increased by 13.7 per cent year-on-year (Y-o-Y), reaching 33,11,325 units compared to 29,10,141 units in Festive-2023 (October 15 to November 25).
On a YTD basis (April to October FY25), retail sales rose by 13.54 per cent to 1,06,36,263 units, according to data from Federation of Automobile Dealers Associations (FADA). October 2024 retail sales surged 36.34 per cent Y-o-Y to 20,65,095 units, with a month-on-month growth of 71.48 per cent from September.
The two-wheeler segment also posted its highest-ever wholesale figures for October at 21,64,276 units, up by 14.2 per cent compared to last year, according to Society of Indian Automobile Manufacturers (SIAM). In October 2024, rural sales grew 1.16 per cent Y-o-Y, while urban markets saw a slight contraction of 1.41 per cent.
Hero MotoCorp, the world's largest manufacturer of motorcycles and scooters, sold 439,777 units domestically in November 2024, a decrease of 7 per cent compared to November 2023. However, exports rose 36 per cent, reflecting a strong international performance. The company's electric vehicle (EV) brand VIDA showed growth, achieving 11,600 retail sales during the festive season and expanding its market share.
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Bajaj Auto's domestic two-wheeler sales also fell by 7 per cent to 203,611 units in November, down from 218,597 units in the same month last year. However, exports surged by 26 per cent, cushioning the overall performance.
Royal Enfield experienced a 4 per cent decline in domestic sales, delivering 72,236 motorcycles compared to 75,137 in November 2023. Despite this, the company reported a 96 per cent growth in exports, driven by the success of its premium motorcycles in international markets.
However, TVS Motor Company bucked the trend, registering a 6 per cent growth in domestic two-wheeler sales, selling 305,323 units in November 2024. This growth can be attributed to strong demand for scooters, which grew by 22 per cent, and a 57 per cent surge in EV sales.