Two Wheeler Sales For December 2016 Show Mixed Results

DEMONETISATION LEAD THE INDIAN TWO-WHEELER MARKET TO CLOSE A CHALLENGING DECEMBER 2016 AT 9.09 LAKH UNITS, AN 80-MONTH LOW.

This year demonetisation has been the driving force in affecting sales for consumer products including two-wheelers. Despite this financial turn, some manufacturers have registered more sales for the month of December 2016 compared to the corresponding month of 2015. So, let's take a look at the performance of these manufacturers.

Yamaha Motor India

Despite the slump in sales for consumer goods, Yamaha has seen a steady growth. Registering sales of 49,775 units in December compared to 38,833 units in December last year, the company recorded a growth of 32 per cent. In fact, annual sales have gone up by 28 per cent, with Yamaha having sold 7.86 lakh two-wheelers in 2016 compared to 5.94 lakh units in 2015. Yamaha has been further strengthening its focus on two-wheeler sales with the launch of the Ray ZR in 2016 and the Fascino in 2015. The focus on scooters seems to be paying off and the Fascino has been well-received by the Indian audience and has been doing quite well. The sales are expected to rise even further with Yamaha planning to launch two more scooters this year. Moreover, the company is also launching the FZ-250 on January 24th, which will further strengthen its foothold in the premium motorcycle segment.

Royal Enfield

Against sales of 40,037 units in December 2015, Royal Enfield has registered 41 per cent growth in December 2016, selling 56,316 motorcycles. interestingly, the company has registered a record export growth of 160 per cent with 1,082 units in December 2016 compared to the 416 units of the corresponding month last year. It is safe to say that the launch of the Himalayan in countries like Australia and Colombia has brought in a good result for the company. Moreover, the growth in the Indian market is a result of the company's advanced products and the increase of its production capacity as well. RE has also added 117 new dealerships to its already strong dealer network, further extending it to a total of 642 stores pan-India.

TVS Motor:

Recording a 7.5 per cent sales decline against 194,001 units in December 2015, TVS Motor managed to sell 179,508 units in December 2016. While it remained almost constant in the export market with a hike of around 1 per cent, the company registered a downfall in the domestic market in both the motorcycle and the scooter segment. The reason for the decline of the company could be the extensive focus on the premium segment with the newly-launched Apache RTR 200 4V and other upcoming flagship products. While the new TVS Victor managed to steady the foothold of the company, the Jupiter that also received an update as the MillionR edition (with front disc brake) to maintain its charm in the respective category.

Bajaj Auto:

Bajaj was also significantly affected by demonetisation as it witnessed a slump of 18 percent in its motorcycle sales. The company sold 2,03,312 units in December 2016 against the 2,47,782 units sold in the same month of 2015. While the company's products like the V15, Platina 100 ES, CT 100 and the Pulsar are in best-selling motorcycles of the country, Bajaj might also feel the need of some scooter models in its portfolio now. The company has also discontinued most of the Discover models from its line-up and are now just selling the old Discover 125 in the market. However, Bajaj has lots of expectations from its new Dominar family that the company bets on to become a million-dollar brand in a couple of years. Also, the updated 2017 range of existing Pulsar models, currently on sale, might also help Bajaj gain its momentum.

Honda Motorcycle & Scooter India

While witnessing a 66 per cent hike in exports, Honda Motorcycle & Scooter India registered an overall sales decline of 20.3 per cent. The company sold a total of 231,654 units in December 2016 against 2,90,712 units in the same month of 2015. The company is already doing best in the scooter segment with the top-selling Activa 3G, while its foothold in the motorcycle segment is a bit dicey. While offering a good range of commuters as well as some premium models, Honda has the third position in the motorcycle segment. The reason might be comparatively high prices of its products as compared to that of Hero and Bajaj. However, the quality that HMSI offers with its products worth that little extra cost has gradually started to click with buyers.

Hero MotoCorp

Hero MotoCorp proved once again why it is the largest two-wheeler manufacturer. Despite poor sales in the last couple of months, the company sold a record, over 6.76 million units of two-wheelers in the period of 2016, translating into a growth of 4.3 per cent over the previous calendar year. Hero sold 3,30,202 units in December 2016, against 4,99,665 units in the corresponding month last year, registering a drop of 33.9 per cent. This is not only due to demonetisation but the company’s manufacturing facilities at Gurgaon, Neemrana and Haridwar being closed from December 26th-31st on account of annual maintenance was also a major contributing factor to the same. HMCL is the market leader in the motorcycle segment, while gradually progressing in the scooter segment as well. It's new products including the Maestro Edge and the Duet are doing quite well while some new models are also reported to be in the pipeline, including a 125cc scooter.

Source: bikedekho.com