Honda Accounts for Nearly Half of Incremental Two Wheeler Sales

Honda Motorcycle and Scooter India (HMSI) accounted for almost half of the incremental two wheeler sales in May. Overall, Honda posted a 19 per cent rise in sales in the same month, selling 4,36,358 two wheeler units in May, up from 3,67,167 units in May 2015.

Total sales of the six largest two wheeler makers - Hero, Honda, Bajaj, TVS, Royal Enfield and Yamaha accounted for 17,22,265 units in May 2016, an increase of 1,47,411 units. Honda Motorcycle & Scooter India alone accounted for 69,191 units, or 47 per cent of the incremental sales.

"We have made a very strong start in the new financial year, and we have carried the momentum forward in May as well, as Honda was the highest volume gainer in the industry with a contribution of 47 per cent to the incremental total volume," said YS Guleria, Senior Vice President for Sales and Marketing, HMSI.

Guleria added that growth was driven mainly by new models Livo, CB Shine SP and CB Hornet 160R. The demand for Honda two wheelers is being driven by urban and semi-urban markets and with the prediction for a good monsoon, Guleria expects a positive sentiment going forward in rural markets as well.

HMSI hopes to cross the 5.4 million sales mark for the first time this year, after selling 4.8 million two wheelers last year. Backing this forecast will be the new scooters-only plant in Gujarat, with a total capacity of 1.2 million unit production. Honda has already commissioned the first line of production, with a capacity of 6,00,000 scooters. The second line with similar capacity will be onstream later this month or by July.