The Automobile especially the two-wheeler industry is going through a tough time due to a cluster of growth-impacting factors such as Lockdown due to Coronavires outbreak, slackening liquidity, rise in insurance rates, 10-15 percent increase in prices of BS6-compliant two-wheelers, and, of course, the economic slowdown in the country. Recently released sales reports by some OEMs stats that all three vehicle segments i.e. Passenger vehicles (PV), commercial vehicles (CV), and two-wheelers have seen their sales plunge by 88% in March and by 27% in Financial Year 2020. As per the sales dispatch numbers released by 6 two-wheeler OEMs, Here we are taking a closer look at their performance in March 2020, along with a Comparision of performance in FY 2019 and FY2020.
Hero MotoCorp Bike and Scooter Model, which has 37.74 percent of the two-wheeler market share with at 3,34,647 units, last month's sales are a sizable 42 percent down on year-ago figures i.e. March 2019 with 5,81,279. The industry slowdown has lasted for over a year now and impacted sales of commuter motorcycles, Hero’s Sales FY2020 numbers get 11 percent down YoY at 64,09,719 units which were 72,39,460 in FY2019. The company said in a statement that "In March 2020, the auto industry and the entire global economy has been faced with unprecedented disruption, owing to the novel coronavirus. COVID-19 has resulted in interrupted supply chains, halted production and lock-down, leading to no retails."
The No. 2 industry player Honda Motorcycle & Scooter India in two-wheelers has around 27% market share. As per record, the company reported a spike of 11 percent in domestic market sales with 2,45,699 unit sales in March 2020 as compared to 222,325 in March 2019. However, the company wrapped up FY2020 with total sales of 47,06,572 units, thus reported a YoY decline of 15 percent in FY2019 the total sale was 55,20,617 units.
Yadvinder Singh Guleria, Director (Sales and Marketing), HMSI, said, “Honda was the first two-wheeler manufacturer to lead the BS-VI transition almost six months ahead of the deadline with the Activa 125 BS-VI in September 2019. Despite all efforts, 2019-20 has been a challenging year in more ways than one. The COVID-19 impact derailed industry’s plans and has severely impacted the automobile ecosystem – right from the supply chain to dealers.”
Bajaj Auto Models is at the fourth-placed in the OEM chart, which has 12%market shares. The company reported a decline of 55% in March with sales of 98,412 units compared to220,213 unites sales of March 2019. There is also an 18 percent YoY drop with sales of 2,078,348 units in FY2020 as compared to 2,541,340 units in the Financial year 2019, indicative. However, the total exports with 1,869,220 units exported in FY2020 saw a 10 percent increase.
TVS Motor Company is on No. 3 in the industry with 14 percent market share, has also gone through a tough time just like others. As per reported data, the company faced a sharp 62 percent decline a sale in March 2020 with 94,103 unit sales, last year in march the sales number was 1,53,591 units. The company also reported 18 percent YoY After comparison of decline in FY2020’s 30,89,000 sales and FY2019's 37,57,000 units.
Unlike other automobile companies, Suzuki Motorcycle India is concluding FY2020 on a positive note. Luckily Suzuki Motorcycle India has reported a 5.7 percent increase in FY2020 over FY2019 with 7,90,397 unit sales compared to 7,47,506 unit sales in FY2019. Suzuki’s Access 125 is the bestselling 125cc scooter in India that contributed to this growth.
Royal Enfield is a Midsize motorcycle manufacturer registered a 41 percent drop in sales. The company sold 35,814 motorcycles in March 2020 compared to 60,831 in March 2019. Similarly, the company also reported a 16 percent YoY decline in FY2020, as per record total sales were 6,95,947 units in FY2020 compared to 82,6098 in FY2019.
The world is fighting against the Coronavirus outbreak and along with it, India is also going through a market slowdown which has lasted for over a year now. The country-wide lockdown is on, Manufacturing plants are closed, Financial Year 2021 has started, A new month started and the BS6 norms have been also kicked in. With the hope of a better month and better Financial Year, we are concluding our post.