Two-wheeler sales remain subdued in July as manufacturers limit dispatches

Two-wheeler dispatches in July either dropped or remained flat year-on-year as subdued demand and increasing stock levels at dealerships prompted manufacturers to align demand to supplies. Auto firms in India count dispatches to dealers as sales.

Cumulative sales at four companies including Hero MotoCorp, Bajaj Auto, TVS Motor and Royal Enfield during the month dropped by 2.4 per cent to 370,691 units from 380,046 units from the year ago period. Honda Motorcycle and Scooter India, the second largest in the pecking order hasn’t released monthly sales data yet.

Among the mass manufacturers, with the exception of Bajaj Auto which saw its domestic dispatches increase in July, albeit marginally, to 156,232 units from 152,474 units in the same month last year, others including market leader Hero MotoCorp and TVS Motor saw a decline. For Hero, which sells every second two-wheeler, it fell 12 per cent year-on-year to 454,398 units during the month as the pandemic disrupted lives in rural India. The company draws half its sales from rural markets. Sales at TVS also skidded 7 per cent year-on-year.

In a statement, Hero said most of the retail touch-points of the company are operational across the country, although localised lockdowns imposed by certain states in the wake of sporadic coronavirus cases continue to restrict the customer movement. “India’s rural economy and semi-urban market is expected to bounce back on the hopes of good monsoon and customers’ preference for personal mobility,” it said.