After several months of gloom and doom, two-wheeler manufacturers and dealers can finally breathe a sigh of relief. Breaking the jinx of negative growth for several months, two-wheeler sales have zoomed in October 2019. According to Federation of Automobile Dealers Associations of India (FADA), two-wheeler sales have shown improvement in most states and UTs.
Overall, 13,98,290 units were sold across the country, which translates into positive YoY growth of 10.08%. Sales in October last year stood at 12,70,261 units. Around 70% of states and UTs have registered positive YoY growth, which is an encouraging sign for two-wheeler industry.
India’s most populous state Uttar Pradesh leads the pack with sales of 1,83,411 units in October. It translates into positive YoY growth of 1.44%, as compared to last year October sales of 1,80,809 units.
At number two is India’s richest state Maharashtra with sales of 1,49,164 units in October 2019. Sales are down -9.61%, as compared to Oct 2018 when 1,65,020 units were sold. At number three is Gujarat with sales of 1,22,722 units. The state has registered marginal (0.54%) improvement in YoY sales growth, as compared to last October when 1,22,067 units were sold.
At fourth and fifth are Tamil Nadu and Rajasthan, with sales of 1,16,070 and 1,10,965 units, respectively. While Tamil Nadu’s YoY growth has fallen by -16.03%, Rajasthan has improved its figures by 19.17%.
At number six, Karnataka is the third state in the top 10 to register negative YoY growth. A total of 1,01,911 units were sold in the state, which translates into negative growth of -4.98%. Other states in the top 10 list include Odisha at 7th place (86,215 units), followed by Bihar (74,898), Kerala (63,349) and Chhattisgarh (55,348).
In addition to increased sales in October, another positive development for two-wheeler dealers is that inventory levels have come down significantly. As compared to 60-65 days in September, average inventory level in October was in the range of 35 – 40 days. It is still higher than the recommended 21 days, but FADA is happy that things have improved. FADA has thanked and appreciated efforts made by two-wheeler manufacturers to reduce inventory levels.
FADA is hopeful that things will start improving henceforth, as liquidity situation is easing in the country. Steps taken by the government to revive the auto sector are also starting to have the desired effect.