The rural-centric moped’s sales in August saw the highest growth in the two-wheeler segment since the lockdown began in March.
According to the Society of Indian Automobile Manufacturers (Siam), total sales of mopeds (TVS Motor is the sole manufacturer of the moped) stood at 70,126 units in August 2020 against 55,812 units in August last year, a growth of 25.65 per cent. In July, moped sales grew by 14 per cent after reporting a drop of 22 per cent in June.
One of the key growth drivers for better sales is the government’s priority of spending towards rural development and agriculture. Also, the good monsoon and a healthy sowing season led to a positive impact in August, according to analysts.
Moped sales have been under pressure till June due to weak sentiment in the rural market since there was always a worry about delayed monsoon. Besides, the higher insurance premium led to a 12 per cent increase in on-road prices. Also, huge discounts from playersselling economy motorcycles impacted moped sales.
But things turned around in June after the good monsoon and positive sentiment in the rural market. Mopeds with ecothrust fuel injection (ET-Fi) were popular this year. ET-Fi technology provides enhanced overall performance with smooth driveability and fuel economy, claims the company.
The company’s management, in an investor call recently, had said that mopeds are seeing a good response, thanks to the ET-Fi technology, which gives a host of benefits and 15 per cent fuel efficiency.
“As you know, that has got ISG, that has got so many attractive features. So moped, definitely, this rural recovery will help our commuter motorcycles and moped. We have gone for only fuel injection, okay. Whether it is all models starting from moped till Apache, we have gone ahead with EFI solution,” said the management.
TVS Motor, India’s third largest two-wheeler maker, remained the sole manufacturer of mopeds after Hero and Kinetic exited the segment many years ago.
During April to August, total moped sales stood at 1,82,237 units compared to 2,75,001 units in the same period of the previous year, a drop of 33.73 per cent.