India is one of the largest two-wheelers industry in the world. There are a huge number of people who drive two-wheelers in India. But due to this pandemic, sales of the same has declined a lot. Lockdown has made people sit at home. And after the lockdown, Covid-19 is not allowing people to go out frequently. Buyers are avoiding the purchase of new bikes, scooters, and all.
According to reports, passenger vehicles’ (PV) demand grew this Navratri. Many people bought the PVs. And business of the same was pretty good for the sellers. And on Diwali, this is expected to grow even more. But on the other hand two-wheelers, demand is declining. This Navratri season was not able to show growth.
Rajiv Bajaj, MD, Bajaj Auto, indicated that Navratri was disappointing for them. He said that sales of two-wheelers were not good especially the entry-level 100 cc segment. “The mass consumer is not coming back in a hurry as this end of the market is under a lot of pressure,” he said on Monday.
According to the Federation of Auto Dealers Association (FADA), the demand for two-wheelers is declining continuously. This month of Navratri was expected to show a growth in sales. But this month showed a double growth decline in sales. Sales in Navratri this year was very tepid. But sellers and analysts are expecting growth during the Diwali season. This was seen as no divergence is there between sales of PVs and two-wheelers.
Reports for Two-wheelers
Bajaj is one of the largest companies in India. According to Bajaj, domestic motorcycles sales were down 3 percent year-on-year (y-o-y). And the 100-cc portfolio was drastic. This was said as CT100 and Platina motorcycle sales fell by 30 percent y-o-y. But at the same time premium segment showed growth. Pulsar bikes’ sales rose by 28%. And KTM and Husqvarna also showed an increase in sales of 25%.
Retail sales of PVs grew about 10 percent y-o-y in September, while those of two-wheelers reported a 13 percent decline. Data from the Society of Indian Automobile Manufacturers (SIAM) on October 16 showed PV sales grew 17.02 percent y-o-y in the September quarter while sales of two-wheelers remained almost flat at 0.17 percent.
The reasons for this decline are many. And these reasons are so serious that even the festival season is not showing growth. These reasons are fewer new launches, low institutional buying, and low sales of entry-level two-wheelers.