Two-Wheeler Industry Posts Steady Growth

The Indian two-wheeler industry is growing steadily after a few lean months of sales. In August 2017, the two-wheeler industry grew over 14 per cent, with market leader Hero MotoCorp leading sales volumes. Hero sold 6,61,490 two-wheelers in August, while Honda Motorcycle and Scooter India (HMSI) is in second place, selling 5,86,237 two-wheelers. According to data released by the Society of Indian Automobile Manufacturers (SIAM), the Indian two-wheeler industry sold nearly 19 lakh two-wheeler units in August. In the first two quarters of the current financial year, in the period from April to August 2017, over 84 lakh two-wheelers were sold in India, a growth of 10 per cent over the same period a year ago.

"The overall market sentiment is good right now. The interest rates are good, rural markets are seeing a recovery after a good monsoon, and effects of demonetisation are wearing off. So, we hope there is sustainable demand in the next few months as well," said Vishnu Mathur, Director General, Society of Indian Automobile Manufacturers (SIAM).

Market demand is expected to pick up further in the next couple of months due to the festive season

India's top two-wheeler manufacturers by volume, Hero MotoCorp, Honda Motorcycle and Scooter India and TVS Motor Company all showed impressive growth rates in the first two quarters of the current financial year. Honda grew by over 20 per cent in this period, while Royal Enfield grew by over 23 per cent, selling over 3 lakh motorcycles in the first two quarters. In August alone, Royal Enfield sold over 66,000 motorcycles, the company's best-ever sales figures for a single month. TVS Motor Company, the third largest two-wheeler manufacturer by volume, sold a total of 11.64 lakh two-wheelers in the first two quarters. Piaggio Vehicles Pvt Ltd, which sells Vespa and Aprilia two-wheelers, posted impressive growth of over 120 per cent, though volumes were only around 25,000 units.

Also Read: Piaggio Registers 120 Per Cent Growth

Suzuki posts impressive growth with sales picking up among its products

Suzuki Motorcycle India Pvt Ltd also grew by over 54 per cent in the same period (April-August 2017), selling 1.9 lakh scooters and motorcycles. India Yamaha Motor Pvt Ltd sold over 3.42 lakh two-wheelers in the same period, but growth remained flat. Bajaj Auto sold 7.63 lakh two-wheelers in the same period, but the company is facing pressure in the domestic market. With the recently launched Bajaj Pulsar NS160, Bajaj will be looking to tap the festive market sentiment and shore up some growth numbers in the coming months. Bajaj Auto's exports though remains on track. Bajaj is one of the largest two-wheeler exporters, and in the April to August period, exported over 5.6 lakh two-wheelers.