2 Wheelers Sales Drop by 26 % for Oct, 2021

For the month of October, 2021, according to sales data gathered from 6 major OEMs, a total of nearing to 14,77,313 units has been sold, last year sales recorded for the month of Oct,2020, was 19,85,690 units. Month on month growth was a marginal uptick of mere 1%.

One of the major causes for the decline of sales might be soaring prices of petrol, which has crossed above Rs.100 a litre mark across the nation. The commuter motorcycle market, which has been typically delivering the goods to OEMs in a month, it has also felt the heat of rising prices, which has kept the buyers at bay. And we find the fair portion of these buyers might be from rural India.

Hero MotoCorp

The HeroMotoCorp, presently has around 35% share of the overall 2 wheeler market, for the previous month, it sold around 5,27,77 units in the domestic market, thus marking 33% sales declines on a YOY basis(Oct 2020, 7,1,137). Nonetheless, it has been found, there has been month on month growth with 22,317 units sold previous month, thus marking a 4% increase (for September 2021, units sold were, 5,05,462).

Honda Motorcycle & Scooter India

Honda Motorcycle & Scooter India, recorded total sales of 3,94,623 units and it witnessed decline of about 20% . For Oct, 2020, units sold were 4,94.459. Things were no better on a month on month basis, it has been down by 15% down, thus it has sold about 4,63,379 units in the month of September, 2021.

TVS Motor Company

TVS Motor company, the No 3 player having 14.24% market share, sold a total of 2,58,777 units previous month, down by 14% YOY (Oct 2020. 3,01,380). However, compared to both Hero MotoCorp and HMSI, TVS fared better month on month- up 6% versus September 2021's sales of 2,44, 084 units.

Royal Enfield

Royal Enfield sold nearing to 40,611 motorcycles previous month when compared against 62,858 units in the month of Oct 2020, thus marking a sharp 35% year on year decline, month on month.

Suzuki Motorcycle India

Suzuki Motorcycle India, sold about 56,785 units previous month, the company registered YOY sales decline of about 16% (Oct 2020: 67,225).

What is worrying?

Unless and until fuel prices are reduced, we find overall sales numbers in the 2 wheeler segment would continue to remain under pressure. The high double digit sales would decline in the month of October is worrying.

The volumes also reflect the some impact due to extended supply chain disruptions (semiconductor Chip shortages) to production of high end (.1500cc) 2 wheelers.