Honda Two Wheelers posted a marginal sales growth in Aug 2020
Honda Motorcycle and Scooter India reports total sales decline of 1.9 percent at 4,43,969 units sold in August 2020, down from 452,551 units sold in August last year. Of this, domestic sales accounts for 4,28,231 units at sales growth of 0.6 percent, up from 4,25,664 units sold in August 2019. Exports fell 41 percent from 26,887 units in August 2019 to 15,738 units in August 2020.
HMSI sales recovery
While a YoY comparison is not a complete reflection of the tough times on hand, MoM comparison reflects a more positive outlook. In August, Honda’s domestic sales crossed 4.28 lakh units for the first time in FY21. This is attributed to improved supplies and higher utilization of production capacity. Over 90 percent of the HMSI network is back to business and the company has seen an increase in customer enquiries.
Following complete lockdown since March end, manufacturers were able to restart production, sales and distribution in a phased manner since May 2020. As limitation continue to be lifted, and functionality reaches normalcy, HMSI sales is quickly gaining pace. Domestic sales was reported at 2.02 lakh units in June 2020, and 3.09 lakh units in July 2020. With operational ease, sales has improved by over a lakh units for the past three months.
Honda registered sales of four lakh plus units for the first time in FY’21 and the company’s domestic sales grew one per cent as well. In comparison to July 2020, Honda’s sales grew 38 per cent with 321,583 units sold. The other important thing to note is that Honda’s domestic sales have been growing by one lakh units for the third consecutive month. The company sold 2.02 lakh units domestically in June 2020, 3.09 lakh units in July 2020 and 4.28 lakh units in August 2020.
The uptick in sales is expected to be further supported through the ongoing festive season. Yadvinder Singh Guleria, Director – Sales & Marketing, Honda Motorcycle & Scooter India Pvt. Ltd. said, “Our line-up of 14 models including our latest motorcycle Hornet 2.0 will excite new customers.” More than 50% of the total sales are thanks to the Activa – India’s best selling scooter.
2020 Honda Hornet 2.0
Newly launched Honda Hornet 2.0 is powered by a 184.4 cc, single-cylinder, fuel-injected engine that returns max power of 17.03 bhp at 8,500 rpm and peak torque of 16.1 Nm at 6,000 rpm paired to a 5-speed manual transmission. The CB Hornet 160R replacement, is Honda’s first motorcycle in the 180-200 cc segment. The move is part of HMSI’s portfolio expansion to cater to a wide range of customers. Honda CB Hornet 160R’s run came to an end when BS6 was mandated from April 1, 2020. Honda Hornet 2.0 motorcycles are scheduled to reach dealerships this week.
While HMSI has a dominant city presence, owing to its every popular Activa range of scooters, the brand is reviewing rural demand that could be met by a motorcycle that sits below its entry level CD 110. In close competition with Hero, a meaningful entry in the mass market bike segment would boost HMSI sales.