New Delhi: Gross sales of bikes and scooters rose in double digits throughout the Navratri-Dussehra interval, with a robust pickup in demand for entry-level fashions indicating an enchancment in sentiment in an important marketplace for two-wheelers—rural India.
Executives at two-wheeler corporations and sellers predict the momentum to proceed within the coming weeks, making this festive season ending with Bhai Dooj on November 3 to be among the many finest for the trade. In addition they undertaking gross sales for the fiscal 12 months to be near the pre-pandemic document of 21 million models hit in fiscal 2019, boosted by an anticipated pickup in rural financial system on the again of beneficial monsoons and good farm output, in addition to a rise in minimal assist costs for a number of key crops. Additionally, the current authorities determination elevating the dearness allowance is predicted to place extra money within the palms of 10 million central authorities workers and pensioners, and part of that is more likely to be spent on shopping for discretionary gadgets like two-wheelers.
Gross sales of two-wheelers rose 15.4% within the 10-day interval of Dussehra ending October 12 in contrast with the competition days of October 15-24 final 12 months, exhibits car registration knowledge from the federal government’s Vahan portal, collated by Goldman Sachs. Different segments of the car trade too posted progress, with gross sales of vehicles growing by 6.6%, three-wheelers 12.3%, gentle items automobiles 9.1% and heavy items automobiles 5.8%.
“Gross sales progress within the two-wheeler section the previous few months was led largely by demand for scooters in city centres,” stated Shailesh Chandra, president of the Society of Indian Car Producers.
“However there may be now a major enchancment in demand in rural areas,” stated Siam’s Chandra. “Good monsoons, wholesome crop yield and authorities spending on rural growth programmes ought to all assist construct this momentum additional, spurring progress in each the two-wheeler and four-wheeler segments in these markets.”
The federal government this week elevated the MSP for seven rabi crops by as a lot as 5%. It additionally raised the DA and dearness reduction by 3%. These and different programmes just like the Pradhan Mantri Gram Sadak Yojana, trade specialists stated, will assist increase consumption in rural India that accounts for greater than half of two-wheeler and a few third of automotive gross sales.
A Hero MotoCorp vendor in North India stated there was sturdy demand throughout merchandise and that fashions like Xtreme 125R bike and Destini Prime scooter carried out notably properly. Through the interval spanning Navratri and Dussehra, retail gross sales on the dealership elevated 10% in contrast with the identical interval final 12 months, he stated.
He expects the entry-level (as much as 125 cc) bike section to realize additional momentum within the second half of the festive season that concludes on November 3.
Except for Bajaj Auto, all main two-wheeler makers — Hero MotoCorp, Honda Motorbike & Scooter India, TVS Motor Firm, Royal Enfield, Suzuki and Yamaha — posted an uptick in gross sales this Navratri. Wholesome demand momentum in rural markets helped Hero MotoCorp and TVS Motor acquire 0.92 and 1.02 share factors, respectively, in market share throughout this 10-day interval.
For Bajaj Auto, Dussehra gross sales had been “muted and decrease than expectations”, govt director Rakesh Sharma stated after the corporate reported its secondquarter outcomes.
