Two Wheeler Sales November 2016: Manufacturers Post Positive Growth

With demonetisation affecting purchases across various sectors, the Indian two wheeler industry has been equally affected by the unprecedented announcement and saw an overall de-growth of 5 per cent. However, manufacturers have managed to recover amidst the trying times and posted positive results in November 2016.

By Carandbike Team

1 mins read

Published on December 2, 2016

Highlights

The overall industry saw a de-growth of 5% due to demonetisation
Royal Enfield and Yamaha posted double digit growth in November 2016
Honda saw its market share increase by 1% to 23% last month

While the Indian car industry may not have been immensely affected by the government's demonetisation strategy to curb black money and counterfeits, the move has left its mark on the two wheeler industry that saw the sales disrupt in the days following the announcement last month, only to recovered towards the end of November. The overall two wheeler market saw a de-growth of 5 per cent in November, 2016; but manufacturers are finally finding stability with more transaction options being offered to customers. Watch Siddharth explaining the impact of demonetisation on auto industry Honda 2Wheelers India managed to close the month with a total of 3,25,448 units, a hike of 1 per cent compared to the same period last year. The company's strategy to shift focus to exports for the month also helped, as it saw volumes increase to 81 per cent last month with 26,053 units shipped, a stark hike when compared to the 14,391 units exported in November 2015. Honda CB Shine SP Honda started exports of the Navi to Sri Lanka last month, while full-fledged exports from the Gujarat facility also commenced with the best selling export model being the Dio scooter. Despite the market woes, Honda managed to gain a 1 per cent hike in its market share, taking it to 23 per cent. Commenting on the sales performance of November 2016, HMSI Senior Vice President. YS Guleria said,"Compared to festival buying in November last year, this year the industry was prepared for an organic correction in November. However, demonetization announcement took everyone with surprise. Two-wheeler sales dropped by 50% in the first 3-4 days of announcement. But recovery started week 2 and by the end of month, Honda's all India sales returned to almost 80% of normal level with South, West and East leading the recovery. Strategically, Honda hedged its business by increased exports focus. Paralelly, networks right up to rural areas extensively started building PoS (Point of Sale) infrastructure and promoted online payment gateways leading to slight recovery towards end of November'16. Looking ahead, we remain cautious on recovery forecast next month as December is traditionally a lean sales month." Royal Enfield Himalayan Meanwhile, Chennai based motorcycle maker Royal Enfield continued to command positive sales figures in November as well, posting a figure of 57,313 units, domestic and exports combined. The company sold 55,843 units in the domestic market, while 1470 motorcycles were shipped overseas. The previous month saw the Eicher owned bike maker record a growth of 41 per cent over the same period last year. In addition, the bike maker also introduced the all-new Himalayan in Australia and Colombia last month and showcased the Euro 4 ready versions of its motorcycle range at the EICMA Show in Milan, Italy. The company is rolling out the models in Europe currently which get ABS as standard. Yamaha YZF-R3 Yamaha India also managed to post positive sales in November 2016 with an overall growth of 20 per cent in domestic sales (including Nepal). The company sold 51,106 units last month as against 42,719 units sold in November last year. Commenting on the sustained growth, Yamaha India, Sales and Marketing, Vice President, Roy Kurian said, "The continuous growth numbers are a sign of Yamaha's robust business plan and strategic customer engagement programs. The company is en route to achieve 1 million in 2017 through exciting products and by expanding its 3S network. The rise of trend-conscious customers will continue to rev the market with excitement. This month, Yamaha achieved a decent sales volume in spite of the restrained growth in business activities due to decreased liquidity. It is more visible in semi-urban and rural areas particularly."