Statewise Two Wheeler Sales – H1 FY19

Thanks to our readers for the overwhelming response on the Statewise Car Sales report. We received multiple requests to share a similar report for two wheelers as well. We are happy to present the same with this post. The format of the reporting is very similar to our previous post and we have tried to add the additional analysis of the top 2 players in the Industry as a bonus.

Around 1,04,96,415 Two Wheelers were sold in the first 6 months of previous financial year (Apr’17-Sep’17) – source. The Industry volumes have grown over 10% and have registered a volume of 1,15,31,359 (over 1 crore fifteen lakh bikes sold in the first 6 months of FY this year !!!). No wonder, India is the world’s largest two wheeler market.

Statewise Two Wheeler Sales Data (FY19 v/s FY18 comparison) –

  • West Zone ranks No.1 in terms of overall sales and is similar to statewise car sales data. Even other Zone ranking are similar to the car sales data (South being No.2; North at Third position & East at last).
  • However East’s overall contribution to India’s Two Wheeler sales is significantly higher (vis-a-vis trend seen in car sales). This clearly signifies the importance of smaller cities in Two Wheeler sales. The dependence on Rural markets is clearly visible and defines the way various OEMs operate.

Ranking of States basis volumes:

  1. The Top 10 states contributes to >70% of Nation’s Two Wheeler Sales!
  2. UP sells more two wheelers than Gujarat+Karnataka combined (PS: Both Gujarat & Karnataka are in Top 5 selling states for Two Wheelers)! There is a saying in Indian Politics that the Party which has clear majority in UP can easily win national elections. The scenario is something similar here as well – The OEM with major Market Share in UP has a tremendous competitive advantage – And this is what is giving Hero Moto Corp the leading edge.
  3. The Zone Wise bifurcation Top 5 states is – West Zone (2 states), South Zone (2 states) & North Zone (1 state).

Hero v/s Honda –

This is the most interesting competition the automobile industry will ever witness. Honda has grown exponentially in the past few years and was expecting to near the gap with Hero Moto Corp this year. However; Hero’s stronghold in North Zone has become a pain area for Honda and not having a strong offering in Entry-Motorcycles is hitting Honda badly.  However do note that Honda has overtaken Hero Moto Corp in 19 out 33 states in comparison here!

  • Hero + Honda enjoy an enviable 66% Market Share in the Largest Two Wheeler Market of the world. The scenario again is somewhat similar to Passenger Cars Market share where Maruti + Hyundai combined contribute ~68% of the Market Share.
  • However; the Market Share difference between Hero & Honda is just 6%. If you study the statewise comparison; the biggest gap and deciding state is Uttar Pradesh where Hero has a clear majority with 55% Market Share and Honda is reeling at just 15% Market Share. Having low market share in the Biggest Two Wheeler selling state of India is pulling down Honda’s aspiration to inch towards the Top Slot.