Daijiworld Media Network - New Delhi
New Delhi, Oct 4: India’s two-wheeler manufacturers saw a healthy 9% year-on-year (YoY) increase in dispatches during September, surpassing the two-million mark, buoyed by festive season demand and a recent Goods and Services Tax (GST) reduction. The government lowered the GST on motorcycles up to 350 cc from 28% to 18%, providing a significant boost to sales.
Key Industry Highlights:
• Hero MotoCorp, India’s largest two-wheeler maker, reported a 5% rise in wholesale volumes to 647,582 units, with registrations surging 19% to 323,230 units.
• Honda Motorcycle and Scooter India (HMSI) posted the slowest growth, with volumes increasing a modest 3% to 505,000 units, without citing specific reasons for the muted performance.
• TVS Motor Company, headquartered in Chennai, recorded a 12% rise in volumes to 413,000 units, supported mainly by strong scooter demand.
• Bajaj Auto, based in Pune, saw dispatches climb 5% to 273,000 units.
• Royal Enfield, owned by Eicher Motors, posted the most impressive growth, with volumes jumping 43% to 113,000 units.
Analysts pointed out that September started slowly due to the Shraad period, traditionally considered inauspicious for purchases. However, demand surged in the final week with the onset of Navratri and the GST relief.
According to an Axis Securities report, the broader automobile sales picture in September showed a mixed trend: strong growth in two-wheelers, three-wheelers, commercial vehicles, and tractors, while passenger vehicle sales slipped on a YoY basis.
Domestic two-wheeler sales rose 6% YoY and 18% month-on-month (MoM), led by standout performances from Royal Enfield (43% YoY), Suzuki Motorcycle (37% YoY), and TVS Motor (12% YoY). Export figures were also robust, growing 17% YoY and 2% MoM, driven by Bajaj Auto, Hero MotoCorp, Royal Enfield, and TVS.
Three-wheeler sales showed a 12% YoY and 6% MoM increase, with Mahindra and Mahindra (30% YoY) and TVS (60% YoY) being key contributors to the growth, the report added.