Honda 2Wheelers India reports domestic wholesales growth in December 2020, and in total sales in Q3 FY21
With December 2020, done and dusted, Honda 2Wheelers India has reported 5 percent growth in domestic sales. Total (domestic and exports) sales for December grew by three percent YoY. At the same time, MoM sales have declined by almost 40%. In all Q3 FY21 sales is reported at 5 percent YoY growth.
Domestic sales is up at five percent at 2,42,046 units in December 2020 up from 2,30,197 units YoY. Exports are at a decline of 19.56 percent at 20,981 units, down from 25,086 units. Total sales in December 2020 stood at 2,63,027 units up from 2,55,283 units. Wholesales for the quarter ended in December swelled to 11,49,101 units from 10,91,299 units.
Short term outlook for HMSI
Yadvinder Singh Guleria, Director – Sales & Marketing, Honda Motorcycle & Scooter India Pvt. Ltd. said, “After the positive retail and wholesale traction in December’20, we enter 2021 with a new hope. The 3rd quarter marked the first quarter of positive sales after a long time.”
About 50% of the total sales are thanks to Activa scooters. Other strong performers for Honda are CB Shine, Dio, Unicorn, Livo, Grazia, Hornet and newly launched CB350. Below is the company’s sales performance for Dec 2020.
HMSI foresees growth in the next 2 quarters too. This is on account of low base sales at the start of 2020. First quarter of 2020 started as any other. But the growing risks of Covid-19 pandemic meant the country went into an indefinite lockdown towards the end of March 2020.
With catastrophic effects on manufacturing and sales. This was also an important period to sell all BS4 stock that manufacturers had as BS6 emission norms were mandated from April 1, 2020. Honda of course had initiated transition well in advance.
April went down in history with all auto manufacturers reporting no sales. Q2 of 2020 took a real beating with manufacturing starting in a phased manner through May 2020. A smooth business run was still weeks away as folks grappled with stealing supply chains and logistics. While Q3 saw activity pick up, it was in Q4 that Honda was sprightly. Traditionally, the festive season has over time proven to be one of planned purchases wherein demand peaks.
Honda Motorcycle Scooter India 20th Anniversary
HMSI says ‘positive growth and market expansion may take some time’. In the meantime, there’s much to look forward to at Honda. 2021 marks the manufacturer’s two decade long presence in India, and 20th Anniversary celebrations will be on. This apart, a range of product launches are scheduled across varied segments.
A wide ranging product portfolio means, Honda has that many opportunities to receive a segment and product. In 2020 alone, manufacturer was able to introduce a dozen products, most of which were BS6 transition models. It did launch the all new Hornet 2.0 and Hness 350 to improve its market reach further by widening the segments it does business in.