Two wheeler sales during the month of May 2019 skidded significantly with every two wheeler maker with the exception of Bajaj Auto and Suzuki Motorcycles positing negative sales. The dip in sales could be attributed to a liquidity crunch, poor market sentiments and distress across rural markets.
Hero MotoCorp, the country’s largest two wheeler maker, reported a 7.69 decrease in sales in the past month. Sales which had stood at 706,365 units in May 2018 went down to 652,028 units in May 2019. The company has surpassed the 6 lakh unit mark in monthly sales for the first time since February 2019 when it sold 617,2015 units of motorcycles and scooters.
In May 2019, the company also introduced three new motorcycles -XPulse 200, XPulse 200T and Xtreme 200S and two scooters — Maestro Edge 125 and Pleasure+ 110 which are now open for booking and expected to bring in better sales in the months ahead.
Honda Motorcycle and Scooter India ((HMSI) posted a 16 percent fall in sales in May 2019. Sales during the past month stood at 459,897 units as against sales of 551,601 units sold in the same month of the previous year.
Bajaj Auto Limited posted a 7 percent increase in sales in the past month and the only two wheeler company to achieve positive growth. Sales during the month of May 2019 stood at 205,721 units as compared to sales of 192,543 units in May 2018. The company saw an increase in demand for its entry level and premium bikes.
In export markets, the company saw a 6 percent increase with 159,347 units sold during the past month, as against 1,50,052 units sold during May 2018. In terms of commercial vehicle sales, Bajaj Auto posted a 16 percent decline in sales in May 2019. Domestic commercial vehicle sales stood at 30,103 units as against 32,082 units sold in May 2018 while where exports were concerned, 24,064 units were sold in May 2019, a 26 percent decline as compared to 32,367 units exported in May 2018.
TVS Motors registered a 4 percent decline in sales in May 2019. Total two wheeler sales stood at 294,326 units in May 2019 as against 298,135 units in May 2018. In domestic markets, sales during the past month stood at 236,807 units as against 246,231 units sold in May 2018, a dip of 3.9 percent. TVS Motors reported total exports of 69,319 units last month, an increase of 11 percent. Motorcycle sales increased by 13 percent from 126,711 units in May 2018 to 142,787 units in May 2019 while scooter sales of increased by 2% from 95,879 units in May 2018 to 98,202 units in the past month.
Royal Enfield sales declined 17 percent in May 2019. This decline follows a sales dip of 20 percent in May 2019 and a 17 percent decrease in sales in April 2019. Sales in the past month stood at 62,371 units as compared to sales of 74,697 units in May 2018. Domestic sales dipped 17 percent to 60,211 units in May 2019 as against 72,510 units sold in may 2018 while in terms of exports, the company suffered a 1 percent decline to 2,160 units as against 2,187 units sold in May 2018. In the past month, the company announced a recall of 7,000 units of the Bullet to fix a brake caliper bolt issue.
Suzuki Motorcycle posted double digit growth of 17 percent in May 2019 with a total of 62,596 units sold as compared to 53,167 units sold in the same month of the previous year. The company expanded their portfolio and the Gixxer SF series were launched in May 2019. The new Suzuki Gixxer SF 250 was launched at Rs 1.70 lakhs while the new Gixxer SF 150 carries a price tag of Rs 1.09 lakhs.
These sales took the overall sales in the two wheeler segment down 8.6 percent from 1,824,604 units sold in May 2018 to 1,679,420 units sold in the past month. A promising monsoon and change in buyers sentiment is expected which could see some revival in this sector.
