NEW DELHI: Showing initial signs of revival, the two-wheeler industry has witnessed strong sales during the recently concluded festive season. Hit hard by the continuous rise in selling prices and falling disposable income of its core buyers, two-wheeler (2W) sales have been under pressure for the past four years. Hero MotoCorp, country’s largest 2W maker, on Thursday, said it recorded its highest-ever festive sales, clocking more than 14 lakh units in retail sales during the 32-day festive period -- between the first day of the Navratri and Bhai Dooj -- this year.
A senior analyst at a brokerage firm tracking the auto sector said 2W sales during the 32-day festive period may have touched the 3 million or 30 lakh units mark. “While we are waiting for the final numbers, the response has been robust with all the big four players -- Hero, Honda, TVS and Bajaj Auto -- clocking a big growth in annual deliveries. There was record demand for Royal Enfield bikes as well,” the analyst said.
Hero MotoCorp said during the festive period, there was robust demand across rural markets as well as steady retail off-take in key urban centres. The company registered a 19% growth over the previous year and surpassed its previous highest retail of 12.7 lakh units, which was recorded in the festive period of 2019.
“Our strong portfolio of brands, scale of distribution and new launches done this year helped in driving this growth across geographies. The festive season is a clear testimony that rural is coming back to growth, which augurs well for the country in general and the two-wheeler industry in particular,” said Niranjan Gupta, CEO, Hero MotoCorp.
Manish Raj Singhania President of FADA said that the momentum observed in the two-wheeler and three-wheeler segments during Diwali mirrors that of Navratri, while there is a modest increase in passenger vehicle sales compared to the Navratri period. The Federation of Automotive Dealers Association (FADA) had earlier said the 2W category saw several positive trends, buoyed by festive cheer and stronger rural demand.