Suzuki, Yamaha post double-digit growth in slowing 2-wheeler market

In a declining two-wheeler market, small players (in terms of market share) such as Yamaha and Suzuki Motorcycle have been clocking high double-digit growth for the past few months. On the other hand, two-wheeler majors like Honda Motorcycle and Scooter India (HMSI) are either seeing a decline in monthly dispatches or at best growing at a low single digit.

Suzuki Motorcycle India, a subsidiary of Japan’s Suzuki Motor, sold 53 per cent more two-wheelers in August compared to the corresponding month last year. Yamaha Motor India, promoted by another Japanese company Yamaha, sold 15.40 per cent more units in August.

Roy Kurian, vice-president (sales and marketing) at Yamaha, said, “The growth is owing to the company’s innovative ongoing customer centric activities, exciting product line up and network expansion. Further, our new scooter, Fascino, is being accepted well in the market.” The company plans to expand its sales network to 2,000 by year-end from 1,300 at June-end.  

Within the two-wheeler segment, sale of scooters is growing in double digits. This compensates for the loss in motorcycle sale volumes. In the April-August period of the current financial year, scooter sales grew almost 11 per cent, while sale of motorcycles dropped by over four per cent. Demand for scooters is largely driven by urban markets, which are not affected by problems the rural areas face.

  However, for Suzuki, the growth is not just coming from scooters, as is the case with Yamaha and also large players like HMSI who are seeing a drop in motorcycle volumes. Suzuki sold 9,117 units of motorcycles in August against just 3,399 units in the same month last year. A Suzuki spokesperson said the volume was being driven by new launches. The company is also planning to expand sales network to 1,000 in from the current 815.

Interestingly, Mahindra, which was facing a decline in two-wheeler volumes for several months, is reporting growth. The company’s volume is also seeing a sequential growth for the last two-three months.

The country’s largest two-wheeler maker Hero MotoCorp has seen volumes decline in each of the first five months of the financial year. Pawan Munjal, CMD and CEO, said early this month that the company was balancing out the inventories in the market place and therefore dispatches to dealers was declining. “Wholesales are not growing but we have been doing better in retail sales. The inventory situation has improved. Starting this month, once again, we will stock for the festive season,” he said.