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Automobiles: Two-wheeler industry set to post double digit growth - IndiaNotes.com
Automobiles: Two-wheeler industry set to post double digit growth
KRChoksey | Published: 07 Dec, 2017  | Source : IndiaNotes.com

The automobile industry witnessed a double digit growth in the month of November 2017. The industry growth was led by robust growth in commercial vehicles segment. The sales of CVs doubled in the month of November 2017 as compared to sales in November 2016 on the back of increase in infrastructural and agricultural activities along with new licenses received and new products launched by leading OEMs. The passenger vehicle segment and two-wheeler segment grew by 21.7% y-o-y and 26.5% y-o-y on the back of increase in demand from rural area and new models launched by companies. The overall industry reported a healthy growth on account of a low base in the year-ago period on account of the government’s demonetisation drive. Going forward we believe CVs will continue its growth momentum, passenger vehicle and two wheeler segment will grow on the back of new launches and increase in demand from rural markets.



Two-wheelers (2W):


After a muted growth in October 2017, 2W industry posted a healthy growth as compared to November 2016 on the back of low base in the year-ago period on account of the government’s demonetisation drive. 2W industry reported a double digit growth of 26.5% in the month of November 2017 as compared to same month last year. The growth in 2W segment was on account of increase in sales reported by leading OEMs like Honda Motorcycles and Scooter India (HMSI) that reported a growth of 41.3% Y-o-Y and Hero Motocorp (HMCL) which grew by 26.1% Y-0-Y.


Honda Motorcycles and Scooters India (HMSI):
The company reported a sales of 487,684 units (including exports) in November 2017 as compared to 351,546 units sold in same month last year, showing a growth of 38.7% Y-o-Y. Exports of the company grew from 26,066 units in November 2016 to 27,667 units exports in November 2017 reporting a growth of 6.1%.


Eicher Motors:
Eicher motors’s reported total sales of 70,126 units sold in November 2017 showing a growth of 22.4% as
compared to 57,313 units sold in November 2016. Motorcycles upto 350cc reported growth of 25.6% from 52,359 units sold in
November 2016 to 65,751 units sold in November 2017. Motorcycles above 350cc decreased by 11.7% to 4,375 units sold in
November 2017 from 4,954 units sold in November 2016. Company’s exports grew from 1,470 units exported in November 2016 to 2,350 units exported in November 2017 reporting a growth of 59.9% y-o-y .


TVS Motors Limited (TVS)
: TVS reported sales of 227,448 units in November 2017 from 179,743 units in November 2016 showing a growth of 26.5% y-o-y. Scooter segment’s growth slowed down to 7.2% y-o-y from 73,135 units in November 2016 to 78,397 units in November 2017. TVS reported sales of 93,202 units of Motorcycles in November 2017 from 67,896 units sold in November 2016 showing a robust growth of 37.3% y-o-y.


Hero Motorcorp Limited (HMCL):
For the month of November 2017 HMCL reported sales of 605,270 units showing a growth of 26.1% as compared to 479,865 units sold in November 2016. Hero Motocorp reported sales of more than six lakh units for seventh consecutive month.


Bajaj Auto Limited (BAL): Bajaj Auto showed a growth of 11.0% from 237,757 motorcycles sold in November 2016 to 263,970 motorcycles sold in November 2017. Domestic sales remained flat as compared to November 2016 at 141,948 units . BAL’s Exports showed a robust growth of 24.5% from 97,992 units exported in November 2016 to 122,022 units exported in November 2017. BAL’s exports grew on account of company’s entry into new geographies.


Going forward, we expect in the coming term 2w industry growth to post a double digit growth. The pickup in sales will be witnessed on account of new launches coming up in motorcycle and scooters by leading OEMs like Bajaj Auto, Hero Motocorp. Also rise in demand from rural markets, increase in demand for scooter will give a boost to 2W industry growth.   Read full report Click here to read the full report