Two-wheeler gross sales witness double digit progress throughout festive season
With roughly 2.5 to three million two wheelers bought this festive season, the section has seen double-digit progress after a flat patch in the identical interval final yr.
The Indian two-wheeler market which posted a flattish sale within the 2022 festive season is again to a powerful double-digit progress inching nearer to earlier peak on the again rising financial system and preliminary indicators of revival on the backside finish of the pyramid. Close to 2.5 to three million items are estimated to have been retailed between Navratri and finish of Diwali season.
The main gamers Hero MotoCorp, Bajaj Auto and TVS Motor — three of the highest 4 two-wheeler makers declare to have grown by double digit within the first half of this season ranging from Onam in August until Navratri in October are estimated to have sustained the sturdy momentum of Navratri and Dussehra into Dhanteras and Diwali, concluding the season with Bhaidooj.
Hero MotoCorp, the most important two-wheeler maker, had already guided for a powerful double-digit progress throughout the analyst convention name. Niranjan Gupta, CEO of Hero MotoCorp had advised analysts that the demand momentum has been very sturdy each on rural and the city markets. “The festive season has started off very well and overall, we do expect momentum building as we move forward. So far, we have grown by 15 percent and we expect that the market will grow in double digits this season,” Gupta had mentioned.
Hemal Thakkar, Senior Practice Leader and Director at Crisil says that the 2 wheeler stock has come below relative management simply pre-festive season and the section has had a great run up throughout Navratri. “Diwali is also expected to be very good for two wheelers. Low base is one of the major reasons for growth being visible. Somewhere the reduction in FAME subsidies for EV2ws has also helped revival of ICE scooters and urban demand is also picking up. Entry level (<110cc) segment which was struggling is seeing some momentum as prolonged replacement is seen happening now. Overall we expect ICE 2w sales to end in lower double digit growth in FY24 while EV2ws to cross a million units during FY24.”
Last festive season, Hero MotoCorp had bought over 1.2 million autos between Navratri to Diwali, this time round, assuming a minimal progress of 15 p.c guided by the corporate, the corporate is prone to have retailed about 1.3 to 1.4 million.
And each its key Indian rivals Bajaj Auto and TVS Motor Company have already outperformed the market within the first half of the season from Onam to Dussehra and each the businesses had expressed confidence in posting double digit progress this season. “We are expecting 12-15 percent industry growth during the festive season as compared to a similar period last year. Our recently launched Pulsar N150 is doing well, and we expect to outpace the industry growth on the back of our strong performance in the 125cc plus segment,” Sharma advised our sister publication Autocar Professional throughout a quarterly media convention name.
This progress could be attributed to a key section of entry two-wheeler patrons coming again. Hero MotoCorp has already witnessed a progress progress in its 100-110 cc section led by the brand new launches and TVS Motor Company too believes that the agricultural market is coming again and it’ll assist the general market.
Federation of Automotive Dealers Association — in its assessment of the Navratri Dussehra season had mentioned, that the 2w class noticed a number of constructive developments, buoyed by festive cheer and stronger rural demand. Enhanced availability of fashions, particularly these in excessive demand from the earlier yr, together with higher monetary schemes, contributed to a stable market momentum.
“States going into elections also injected optimism into the market, leading to an increase in government spending and improved liquidity. Despite a shift in festival dates with Diwali moving to November, the anticipation of the festive season stimulated purchase intent and dealers reported good stock preparation and robust ground efforts that led to an uptick in sales figures, showcasing a resilient and adaptive market,” added the assertion from FADA.
The common stock for the two-wheeler section was ample at 40-45 days and there have been quite a few schemes being rolled out by car makers to woo patrons, particularly for the entry section and within the rural and semi-urban areas.