New Delhi, Oct 4 India’s two-wheeler manufacturers registered a 9 per cent year-on-year (YoY) increase in September dispatches, crossing the two-million mark, buoyed by festive season demand following a cut in Goods and Services Tax (GST).
The government reduced the tax on motorcycles up to 350 cc to 18 per cent. Earlier, the tax rate was 28 per cent.
Hero MotoCorp, the country’s largest two-wheeler maker, reported a 5 per cent rise in wholesale volumes to 647,582 units, while its registrations surged 19 per cent to 323,230 units.
Honda Motorcycle and Scooter India (HMSI), the second-biggest player, posted the weakest performance among peers, with volumes inching up 3 per cent to 505,000 units. The company did not cite reasons for the muted growth.
Chennai-headquartered TVS Motor Company registered a 12 per cent increase in volumes to 413,000 units, supported by strong scooter demand. Pune-based Bajaj Auto saw dispatches climb 5 per cent to 273,000 units.
Royal Enfield, owned by Eicher Motors, recorded the sharpest jump with volumes surging 43 per cent to 113,000 units in September.
According to analysts, the month began on a sluggish note due to the Shraad period, considered inauspicious for purchases, but demand revived strongly in the final week with the onset of Navratri and the GST relief.
Meanwhile, according to a report from Axis Securities, the automobile sales in the month data reflected a mixed trend -- with strong growth in two-wheelers, three-wheelers, commercial vehicles, and tractors, even as passenger vehicle volumes slipped on a year-on-year (YoY) basis.
According to the report, domestic two-wheeler sales rose 6 per cent YoY and 18 per cent month-on-month (MoM), supported by strong performances from Royal Enfield (43 per cent YoY), Suzuki Motorcycle (37 per cent YoY), and TVS Motor (12 per cent YoY).
Exports remained firm, rising 17 per cent year-on-year and 2 per cent month-on-month, led by Bajaj Auto, Hero MotoCorp, RE, and TVS.
Three-wheeler sales also recorded 12 per cent YoY and 6 per cent MoM growth, largely driven by Mahindra and Mahindra (30 per cent YoY) and TVS (60 per cent YoY), the report noted.
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