Honda 2Wheelers India reports YoY sales growth for 3rd month
Honda domestic sales is just shy of 5 lakh units at 4,94,459 units. Volume gain is reported at 6,640 units, up from 4,87,819 units at 1.36 percent growth. Domestic sales accounts for 93.79 percent of total sales. Exports grew to 32,721 units at 8.98 percent growth. Volume gain is reported at 2,695 units, up from 30,026 units. Total sales is reported at 5,27,180 units, up 1.8 percent from 5,17,845 units.
MoM domestic sales fell by 1.28 percent. Sales has dipped from 5,00,887 units at volume decline of 6,428 units. Exports gained 25.96 percent up from 25,978 units. Total MoM sales gain is minimal at .06 percent up from 5,26,865 units.
Looking Forward To Q4 2020
With sales in October 2020 being a strong tailwind for most manufacturers, sales momentum has been noteworthy. This bodes well as the industry goes into Q4 2020 on the back of a weak start to FY21 on account of nationwide lockdown owing to Covid-19 pandemic. While a sudden standstill threw processes off-track, recovery now has been phenomenal. Of course this won’t be enough to recuperate losses incurred a few months earlier, it will help post a strong quarter to end 2020.
While sales momentum was expected, it seems the industry for the most part has bounced back much better than some of the stifled expectations discussed earlier. HMSI covets precious podium spot and has been sitting pretty at number two for years now. Through October 2020, it continues to do so. As expected, HMSI’s strong march forward is propelled for the most part by the ever popular Honda Activa scooter.
Interestingly, though Honda two-wheeler sales are obstinately strong, it still has always been difficult for the manufacturer to catch up with Hero MotoCorp’s sales. Both manufacturers function as strong protagonists of the industry, and foster and nurture the nation’s strong reputation as being a larger the life two-wheeler market. On any given month, cumulative sales from the top two manufacturers could hover around the 10 lakh mark. Interestingly, the two close competitors don’t really compete too closely across segments.
Personal vehicle purchases
Hero MotoCorp gallops forward basis its Splendor, and Honda sales is furthered by its Activa scooter. Current sales growth spurt at present is getting a shot in the arm through a cascading sentiment that’s tipping people’s decision making towards two-wheeler purchases. Need for a personal commute option is now paramount as more folks are cognisant about maintaining safe distancing.
Public transport options though resumed on most routes doesn’t comes with the guarantee of safe distancing, meaning more or more people would rather have a bike. A range of finance options too is ensuring ease of purchase. Business resumption has meant the supply chain and logistics is now uninterrupted.
Yadvinder Singh Guleria, Director – Sales & Marketing, Honda Motorcycle & Scooter India Pvt. Ltd. said, “Ending October, nearly 100% of our network is opened and charged up post recording YOY increase in retails during the first 2D’s of festival (Durga Puja and Dussehra). Riding into the festive season on a high note, our newly launched H’ness-CB350 has garnered great response in a short span of time. In less than 1 month of start of sales of our debut 350ccc mid-size motorcycle, our production is booked till November, even as new bookings continue to rise.”