New Delhi [India], November 2 : Two-wheeler sales are set to outpace passenger vehicles for the remainder of the year, driven by strong festive demand, improved rural sentiment, and selective discounts.
A sectoral update by PhilipCapital noted that discounts in the two-wheeler segment are very selective, while passenger vehicle discounts are gradually declining.
The report added that the rural demand picked up in the last week of Diwali, as farmers received payments from mandis, coinciding with the wedding season, further boosting sales.
"Looking at the strong impetus, two-wheeler growth is likely to outperform passenger-vehicles in balance part of the year," the report added.
Inventory levels remain low to moderate, reflecting robust wholesale momentum in November.
The report suggests that retail optimism is likely to continue until mid-December, supported by strong festive demand.
The festive season also saw two notable trends: upgradation among buyers and motorcycles outgrowing scooters in terms of demand. Small commercial vehicles have staged a strong recovery, while other commercial vehicle segments posted only marginal growth.
The sectoral update observed that the two-wheeler market witnessed strong festive growth, led by Hero MotoCorp, TVS Motor, and Royal Enfield, while Bajaj Auto lagged slightly behind.
As per our checks, Hero reported over 40 per cent YoY growth, driven by its popular commuter and 125cc models, alongside strong rural demand and wedding season momentum.
TVS achieved around 35 per cent growth, with motorcycles like Raider and Apache outperforming scooters.
Royal Enfield recorded 30-35 per cent growth, mainly from sub-350cc models, supported by
brand loyalty, premium upgrades, and attractive financing.
Bajaj Auto's performance remained modest, with low double-digit growth due to no new launches, no discounts, less A&P and created confusion among customers by having multi-sub variants.
"Overall, very positive on the two-wheeler sector as benefits of GST cut is clearly visible
due to low ticket prices as compared to PVs, rural rebounding and new launches to be
supportive," PhilipCapital added.
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