While Hero MotoCorp, TVS gain mkt share, Honda, Bajaj slip
As macroeconomic numbers continue to disappoint, reaching pre-Covid level is unlikely in FY21.
Among the top four players in the two-wheeler space, Hero MotoCorp and TVS Motor gained market share in August at the expense of Honda Motorcycle and Scooter India, and Bajaj Auto.
However, this shift occurred at a time when the two-wheeler segment as a whole contracted 28.7 per cent in August, with sales at 898,775 units, down from 1,260,722 units the previous year.
Though, sequentially, the drop was only 11.5 per cent.
According to the Federation of Automobile Dealers Associations (FADA), Hero’s sales dropped to 328,068 units, from 428,227 units a year ago, but the company’s market share rose to 36.50 per cent, from 33.97 per cent a year ago.
TVS Motor’s market share increased to 15.57 per cent, from 15.11 per cent, while sales dropped to 139,936 units, from 190,520 units, a year ago.
Meanwhile, Honda’s market share dropped to 24.87 per cent in August, from 26.31 per cent the previous year.
The Japanese automaker reported sales of 223,496 units, compared to 331,673 units, a year ago.
Baja Auto’s market share also dropped, to 11.13 per cent in August, from 12.51 per cent a year ago, while sales dropped to 100,072 units, from 157,697 units.
India Yamaha Motor and Royal Enfield saw marginal increase in their respective market shares.
For Yamaha, market share rose to 3.99 per cent, from 3.67 per cent a year ago, but sales fell to 35,878 units, from 46,209 units.
In the case of Royal Enfield, market share rose to 3.91 per cent, from 3.86 per cent a year ago, but sales declined to 35,105 units, from 48,627 units.
According to CARE Ratings, pent-up demand from April, May, and June because of the lockdown is expected to be spread out over the second half of 2020.
In an attempt to revive the economy, the government is gradually easing curbs on movement and gathering of people.
Also, more employees are reporting back to their offices.
This is expected to spur demand for private vehicles.
“As macroeconomic numbers continue to disappoint, reaching pre-Covid level is unlikely in FY21.
“While volume pick-up is expected in H2FY21, full demand recovery is not expected until at least FY22.
“The two-wheeler, passenger vehicle, and tractor segments shall witness faster recovery than the rest,” said CARE Ratings.
Photograph: Saumya Khandelwal/Reuters
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