Two wheeler sales suffered de-growth of 28.71 percent in August 2020
The lockdown may have eased and public transport services have been restored but the economy is yet to rectify itself. In the month of August 2020, even as there is a slight MoM increase in two wheeler sales with more buyers opting for personal means of travel in fear of contracting the deadly virus, people are still very thrifty with their money considering the current economic situation in the country.
Let us look at statewise two wheeler sales in August 2020. It may be seen from the attached table that sales in this segment dipped 28.71 percent YoY to 8,98,775 units as against 12,60,722 units sold in August 2019. However, it was a marginal increase over 8,74,638 units sold in July 2020.
Growing need for personal mobility
When assessing statewise two wheeler sales, it may be seen that the top order has not changed between July and August 2020. Uttar Pradesh, Tamil Nadu and Maharashtra continued to claim the top three spots.
Sales of two wheelers in UP dipped 42.17 percent to 1,29,443 units in the past month as against 2,23,841 units sold in August 2019. MoM sales also decreased from 1,63,513 units sold in July 2020. Tamil Nadu saw a 17.94 percent decline in two wheeler sales last month. Sales stood at 1,10,757 units, down from 1,34,971 units sold in August 2019. The state of Maharashtra noted a YoY de-growth of 24.77 percent to 84,000 units as against 1,11,651 units sold in August 2019 but MoM sales increased as compared to 70,690 units sold in July 2020.
In the past month, Bihar was at No. 4 with 69,441 two wheelers sold, down from 72,864 units sold in August 2019. However, Bihar has seen a significant jump in position as the state had stood at No. 7 in the list of July 2020 sales when a total of 49,116 units were sold.
With a total of 65,711 units sold last month, West Bengal was at No. 5 and Karnataka (64,189), Rajasthan (58,099) and Gujarat (46,486) followed in quick succession. Odisha and Kerala also noted degrowth by 29.39 percent and 32,33 percent respectively to 32,165 units and 30,226 units.
Positive growth was noted in the state of Jharkhand. Sales of two wheelers increased by 1.92 percent in Jharkhand with 30,140 units sold in the past month, up from 29,583 units sold in August 2019. The two other states where there was an increase in two wheeler sales in August 2020 over that of August 2019 was Jammu and Kashmir, Himachal Pradesh and D&D and D&N.
Sales in J&K increased substantially by 334.06 percent from 3,817 units sold in August 2019 to 16,568 units sold in the past month. Sales in Himachal Pradesh stood at 7,432 units in the past month, up 8.61 units as against 6,843 units sold in August 2019 while there was a 32.50 percent increase in two wheeler sales in D&D and D&N to 897 units in August 2020.
The north eastern states of Sikkim, Manipur and Ladakh noted significant de-growth in terms of two wheeler sales last month. Sales in Sikkim dipped 65.85 percent to 126 units, down from 369 units sold in August 2019. Sales were even lower when compared to 147 units sold in July 2020.
Two wheeler sales in Manipur noted the maximum de-growth of 99.22 percent to just 16 units, down from 2,058 units sold in August 2019. MoM sales also suffered a de-growth as against 116 units sold in July 2020. Sales in Ladakh dipped 88.89 percent to 6 units as compared to 54 units sold in August 2019 but increased marginally MoM as compared to 0 units sold in July 2020.
The upcoming festive season along with continued preference for personal mobility coupled with strong rural demand could bring in better sales in the months ahead. Such is the level of optimism that scooter and motorcycle makers have already revised their yearend production plans upwards by 8-25 percent to cater to this anticipated increased demand.