Two wheeler makers across India offered heavy discounts on BS III compliant models at the end of March. Company showrooms were flooded with buyers and stocks quickly disappeared ahead of the new BS IV regulations coming into effect. This not only resulted in dealerships clearing out stocks but also allowed two wheeler makers to record increased sales. Every two wheeler company in India reported increased sales in March 2017 with the exception of Bajaj Auto Limited.
The country’s largest two wheeler maker reported an increase in sales in March 2017 when a total of 6,09,951 units were sold as against 6,06,542 units sold in March 2016. Total sales in the past fiscal stood at 66,63,903 units as compared to 66,32,322 units sold in the same period of the previous year.
During 2016-17 fiscal, the company managed to surpass a landmark 6 lakh unit monthly sales on five occasions in a single year. Following heavy discounts, the company has cleared out its BS III compliant stocks and has sufficient stocks of BS IV compliant vehicles to meet current demand of buyers in the country.
Honda Motorcycle and Scooter India
Sales of HMSI for the month of March 2017 declined by 4.08%. The company posted sales of 365,973 units in March 2017 as compared to 381,524 units sold in March 2016. Good news for HMSI is that the company has managed to cross the 5 million unit mark in a financial year for the first time.
During FY 2016-17, HMSI sold a total of 50,08,103 units, up 12% as compared to 44,83,462 units sold in FY 2015-16. Scooter sales also increased substantially crossing the 3 million unit mark for the first time and recording a 16% growth in sales. FY 2016-17 scooter sales were at 33,51,604 units as compared to 28,92,480 unit sales in FY 2015-16. Hefty discounts on BS III two wheelers allowed to company to sell of considerable stocks.
TVS Motor Company
A growth of 10.7% was reported by TVS Motors in March 2017 with 2,50,979 units sold as opposed to 2,26,643 units sold in March 2016. In domestic markets alone, sales surged 8.4% from 2,00,190 units sold in March 2016 to 2,16,995 units sold in the past month. Scooters sales stood at 68,161 units in March 2016 which increased 23.5% to 84,173 units in March 2017. Motorcycle sales surged 10.3% from 86,776 units in March 2016 to 95,671 units in March 2017. Two wheeler exports also increased 28.5% from 26,453 units exported in March 2016 to 33,984 units exported in the past month.
Bajaj Auto Limited
Contrary to what other two wheeler makers in the country experienced, heavy discounts offered in BS III compliant vehicles did not allow Bajaj Auto Limited to report increased sales in March 2017.
Domestic sales dipped 14% and stood at 1,51,449 units in March 2017 as compared to 1,76,788 units in March 2016. Exports increased by 6% to 92,786 units in March 2017 as against 87,461 units exported in March 2016, taking total sales down 8% to 2,44,235 units in March 2017 as compared to 2,64,249 units in March 2016.
Bajaj Auto however had already commenced manufacture of BS IV compliant vehicles from October 2016 and from January 2017, all vehicles from all three company plants are BS IV compliant.
Sales of this Chennai based bike maker surged 17% in March 2017. Total sales during the past month stood at 60,113 units as compared to 51,320 units sold in March 2016. Exports also increased by 24% in March 2017 to 1,564 units as against 1,261 units exported in March 2016. Taking year to date sales into account, Royal Enfield recorded a 31% increase with total sales to the extent of 6,66,490 units as against 5,08,154 units in financial year ended March 2016. The company has cleared out all BS III stocks while deliveries of BS IV compliant vehicles immediately commenced from 1st April 2017.
Yamaha Motor India Sales Pvt. Ltd
Along with other two wheeler makers in the country, Yamaha Motor India also reported substantial growth in sales in March 2017. Growth to the extent of 27% was reported with 76,144 units sold in March 2017 as compared to 60,032 units sold in March 2016. The company has ambitious plans for the months ahead during which period they expect to achieve 1 million sales.
The company’s new line of BS IV compliant vehicles has already been introduced. These will not only meet energy efficient standards but will be offered in attractive color preferences and with AHO – Auto Headlamp On feature.
Suzuki India reported a 74% increase in sales during the past month. Sales stood at 36,029 units as compared to 20,673 units sold in March 2016. Sales in FY 16-17 surged 12% to over 3,50,000 units and the company now targets sales above 5 lakh unit mark during the current fiscal. Increase in dealerships, extended product lineup and augmentation of exports is on the cards which will allow the company to reach this target.
Note – Mahindra Two Wheelers have not shared their sales report yet. Once they do, we will update the story.