NEW DELHI: The top seven two-wheelers makers have collectively reported sales of 15.9 lakh units in November 2020, registering a growth of 13.4 per cent over November 2019 sales figure. However, month-on-month sales were down by 22.1 per cent. While November wholesale numbers seem to be strong, it won’t be a surprise if retail numbers remain muted.
Experts feel that original equipment manufacturers (OEMs) will maintain a cautious approach in the coming months. “Festive season sales were reasonable, with no major negative surprise. Current demand and low inventory sentiment in PV and Tractor suggests higher wholesales in the coming months. On the flip side, 2W and CV OEMs are expected to maintain a cautious stance, with no major inventory push,” said Motilal Oswal Institutional Equities on Wednesday.
According to Motilal, OEMs avoided inventory building for the ongoing wedding season as it is at comfortable levels of 30-45 days. Analysts at Care Ratings noted that wholesales have reduced this month on a sequential basis given that inventories remained high, retail sales have not gained much pace as expected by OEMs.
Last month, dealers and executives had also raised concerns over drying up of pent-up demand after the festive season and economic slowdown impacting sales. According to retail body FADA, sales of two-wheelers fell by 27 per cent in October.
The country’s largest two-wheeler maker Hero MotorCorp reported 14 per cent growth in domestic sales to 575,957 units in November 2020 as against 505,994 units sold in the same month last year. Similarly, others like Honda 2Wheelers and Bajaj Auto had also posted 11 per cent and 7 per cent rise in sales year-on-year.