India, the world’s largest two-wheeler market, which was already grasping for more breath to recover from the deepest slump it went into last year due to income loss and resorted to salary cuts and retrenchments, has further hit the bumpy road in the month of April’21. Nine out of 28 states are under lockdown with no respite in sight as the number of COVID-19 cases touch the record high every single day.
If experts and projections have to be believed, the coronavirus cases will touch their peak in mid-May, which means there will be more lockdown and supply chain disruptions.
As per the latest numbers released by the top six two-wheeler manufacturers, the Indian two-wheeler market is estimated to decline by 33.95% at 953,338 units in the month of April’21 when compared to 1,443,300 units of March’21. Top two-wheeler manufacturers saw a steep decline of an average of 30%.
Mobility Outlook has compared month-on-month data to get an indication of sequential demand.
| OEMs | April’21 | March’21 | %Change (MoM) |
| Hero Motocorp | 3,42,614 | 5,44,320 | -37 |
| HMSI | 2,40,100 | 3,95,037 | -39.2 |
| TVS | 1,31,386 | 2,02,155 | -35 |
| Bajaj Auto | 1,26,570 | 1,81,393 | -30.2 |
| Suzuki | 63,879 | 60,222 | 6 |
| Royal Enfield | 48, 789 | 60,173 | -18 |
| Total | 9,53,338 | 14,43,300 | -33.9 |
Source: Company Reports, SIAM
Gurugram-based Hero Motocorp saw a decline of 37.06% at 3,42,614 units in April’21 as it shut its operation for over ten days in April.
The sales in April’21 were subdued due to the temporary closure of plant operations and the retail outlets across several key territories in India on account of the impact of the second wave of COVID-19, the company said.
“In the past two months, wholesales have again exceeded the retail sales in two-wheelers. There is a difference of 1.25 lakh between wholesale and retail in April and two lakh in March. So somewhere around three lakh inventory is lying idle in two-wheeler showrooms. The primary reason behind this is lockdown and weak consumer sentiments.” said Rohan Kanwar Gupta, Assistant Vice President, ICRA.
India’s second-largest two-wheeler manufacturer, Honda Motorcycles and Scooters India, saw the highest decline of 39.22% at 2,40,100 units in the month of April’21.
Chennai-based two and three-wheeler manufacturer TVS Motor Company also posted a steep decline of 35.01% at 131,386 units.
“Domestic sales in April 2021 is lower due to lockdowns in many states but retails continue to be ahead of despatch. We have reduced dealer stocks to support the channel partners and will produce to maintain adequate inventories for customer demand when it reopens.” the company said in a statement.
Bajaj Auto recorded sales of 126,570 units in the domestic market. However, it exported 221,603 units. The company is the only two-wheeler manufacturer whose exports exceeded the domestic market.
Suzuki Motorcycle is the only two-wheeler manufacturer which slides into the positive territory.
Outlook
With rising coronavirus cases, the second wave has hit hardest the consumer sentiment, which amplified mainly due to lack of healthcare infrastructure and stringent lockdowns; there is no respite in the near term. Moreover, plant shutdowns in May will further impact.
Experts say that the first quarter of the ongoing fiscal year will be again a washout, and they only expect sales to revive back in the second quarter of the fiscal year nearing the festive season, depending upon the vaccination drive.