Two-wheeler sales continue to skid amid Covid-19 pandemic

The lockdown towards the end of March has led to steep fall in the two-wheeler sales and companies including top player Hero MotoCorp reported a drastic decline in sales year-on-year (YoY) in March.

The company sold 3,16,685 units of motorcycles and scooters during the month in the domestic market, a decline of 43 per cent YoY, as compared with 5,53,302 units in March 2019.

On March 22, the company pro-actively suspended production at all its manufacturing facilities – including in India, Colombia, Bangladesh and Global Parts Centre at Neemrana until April 14, 2020.

Tamil Nadu-based TVS Motor Company reported decline of 62 per cent in its domestic sales of two-wheelers to 94,103 units in March as against 2,47,694 units in corresponding month last year.

"There has been a huge impact on the company’s production and sales this month because of Covid-19 lockdown across the country...due to the lockdown, there was a significant loss in production, and also vehicle stock in the factory for both domestic and international markets, which could not be dispatched," the company said.

'Bullet'-maker Royal Enfield also reported decline of 44 per cent in its domestic sales to 32,630 motorcycles in March as compared with 58,434 units in the corresponding month last year.

Vinod Dasari, Chief Executive Officer at Royal Enfield said, "It has been a challenging year for the industry, from subdued market sentiment in the initial quarters, to the current global pandemic situation."

He said while the industry currently continues to face headwinds, the company was confident that in the long-term, there will be slow and steady recovery.

Bajaj Auto also reported a decline of 55 per cent YoY to 98,412 units during the month as compared with 2,20,213 units in corresponding month last year.

Suzuki Motorcycle India sold 33,930 units in March, down 42 per cent YoY as against 58,701 units in same month previous year.

Koichiro Hirao, Managing Director, Suzuki Motorcycle India said, “At present, our first and foremost priority is to ensure the health and safety of the employees and all stakeholders. As the industry fights the Covid-19 pandemic by implementing shutdowns and taking precautionary measures, we believe that industry will overcome this difficult time and bounce back with positive growth in the coming months.”

However, other Japanese subsidiary Honda Motorcycle & Scooter India (HMSI) reported 10 per cent growth YoY in sales during March to 2,45,699 units as against 2,22,325 units in March last year.

Yadvinder Singh Guleria, Director – Sales & Marketing, HMSI, said: “Despite all efforts, 2019-20 has been a challenging year in more ways than one. Covid-19 impact derailed industry’s plans and has severely impacted the automobile ecosystem – right from supply chain to dealers. As a responsible manufacturer, Honda is committed to taking care of all its stakeholders and society at large in these uncertain times.”

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