Hero MotoCorp, TVS, and Royal Enfield lead September surge in Indian two-wheeler sales

New Delhi: India’s two-wheeler manufacturers recorded a 9 per cent year-on-year (YoY) rise in September dispatches, crossing the two-million mark, driven by festive season demand and a recent cut in Goods and Services Tax (GST).

The government reduced the GST on motorcycles with engine capacity up to 350cc to 18 per cent from the earlier 28 per cent, providing a boost to sales ahead of the festive period.

Hero MotoCorp, the country’s largest two-wheeler maker, reported a 5 per cent increase in wholesale volumes to 647,582 units, while its registrations surged 19 per cent to 323,230 units.

Honda Motorcycle and Scooter India (HMSI), the second-largest player, posted modest growth, with volumes inching up 3 per cent to 505,000 units. The company did not specify reasons for the subdued performance.

Chennai-based TVS Motor Company reported a 12 per cent rise in volumes to 413,000 units, supported by strong scooter demand. Pune-headquartered Bajaj Auto saw dispatches climb 5 per cent to 273,000 units.

Royal Enfield, owned by Eicher Motors, registered the sharpest jump, with volumes soaring 43 per cent to 113,000 units in September.

Analysts noted that while the month began on a slow note due to the Shraddha period, considered inauspicious for purchases, demand rebounded strongly in the final week with the onset of Navratri and the GST relief.

A report by Axis Securities highlighted a mixed trend in September’s auto sales data, with robust growth in two-wheelers, three-wheelers, commercial vehicles and tractors, even as passenger vehicle volumes slipped on a YoY basis.

According to the report, domestic two-wheeler sales rose 6 per cent YoY and 18 per cent month-on-month (MoM), led by strong performances from Royal Enfield (43 per cent YoY), Suzuki Motorcycle (37 per cent YoY), and TVS Motor (12 per cent YoY).

Exports remained healthy, up 17 per cent YoY and 2 per cent MoM, driven by Bajaj Auto, Hero MotoCorp, Royal Enfield, and TVS.

Three-wheeler sales also rose 12 per cent YoY and 6 per cent MoM, largely supported by Mahindra & Mahindra (30 per cent YoY) and TVS (60 per cent YoY), the report added.

IANS