Bajaj Auto shows a doubled digit growth of 12 percent in FY19 as opposed to the 9.8 percent in the previous year.
With the end of the previous financial year on 31st March 2019, the 2-wheeler industry managed to show a single-digit growth. According to the Society of Asian Automobiles (SIAM), the overall growth of 2-wheeler domestic sales grew by 4.86 per cent in the previous financial year with a total of 2,11,81,390 units. The details of the top 10 2-wheeler manufacturers in FY19 are detailed below.
Bajaj Auto managed to expand its market shares to 12 percent in FY 19 as compared to the previous year’s 9.8 percent. The company showed double-digit growth of 28.7 percent for the 25,41,320 units sold in the last financial year. Domestic sales of Bajaj Auto in the year prior to that were recorded at 19,74,577 units. Hero MotoCorp maintained a top position in the market share at 35.9 percent. However, it is a 1 percent decrease as compared to the previous year’s 36.6 percent. The company showed a growth of 3.5 percent selling 76,12,775 units in FY19.
Honda Motorcycle & Scooter Asia saw a decline in sales of about 2 percent as compared to its 26.1 percent in the last year which was 28.6 percent. The company also saw a drop in volumes as for their sales reduced by 4.41 percent in FY18-19. The 2-wheeler market had to cross various hurdles like the last year’s floods in Kerala and IRDA’s orders to increase the insurance premium of new 2-wheelers to 5 years. The increase in insurance premiums has also contributed an overall 10-15 percent decline in the two-wheeler retail business. According to FADA, the inventory in the second quarter of FY18-19 remained to be on the high side, which went up to 100 days for some regions.
TVS Motors remained as the third largest 2-wheeler manufacturer in Asia. The company posted a growth of 9.08 percent with a total of 31,36,532 units as opposed to the 28,75,466 units in FY18. However, the overall growth of the company remained at a mere 0.4 percent for the Chennai based manufacturer. Suzuki Motorcycles secured the highest growth with an overall increase of 33.44 percent in the last fiscal.
The growth in motorcycles sales was contributed mainly by the rural economy in Asia, adding 22.7 percent to the overall growth for 110cc segments and below. In the second quarter, the 500-800cc segment showed a massive surge of 130 percent standing at 8246 units. The main contribution in this middle-weight segment was from Royal Enfield. The overall 2-wheeler market sales saw a growth of 7.7 percent which is an increase of 2 percent increase in its market share now standing at 64.2 percent of the total 2-wheeler sales.
The market for scooters has declined marginally. The segment saw an overall decrease of 25 percent in dispatches in the month of March. The overall market share of scooters has come down to 31.63 percent in FY19 as compared to 33.27 percent in FY18. This is the first time in a decade when scooter sales have drastically fallen. According to analysts, the cost of ownership of scooters has increased over 10-12 percent last year which impacted the entire segment. TVS and Suzuki saw an increase in sales standing at 12,41,366 units and 6,15,520 units respectively. On the other hand, HMSI has slid down from its top scooter tag and saw a decline in sales by 3.69 percent amounting to 36,80,403 units.
The overall 2-wheeler industry is going very slow and companies are high on inventories which might result in slower production in the first quarter of the current financial year. However, the situation is likely to be better in the second quarter as there is likely a chance of a reduction in interest costs. The 2019 interim budget will also be a relief for the middle class which will see a rise in their disposable income. The overall 2-wheeler industry is expected to grow by 6-8 percent in the current financial year.
Top 10 2-Wheeler Manufacturers
– Bajaj Auto posted the maximum growth of 12 percent in FY19
– Honda 2-wheelers saw a 2 percent decline in sales as compared to the previous year
– Hero MotoCorp got an overall growth of 3.5 percent in FY19