Bajaj Auto – Apr’19 Numbers

Bajaj Auto has been the outlier among the Two Wheeler OEMs in FY19 and had posted double digit growth in terms of Domestic Sales, Production and even Exports. The price rationalization and growth in the motorcycle segment helped Bajaj achieve such kind of growth numbers. Now with the increased base; will Bajaj be able to continue its success run? With the troubled industry volumes; Bajaj could still be an exception? Let’s see Apr’19 volumes to understand the same.

  • Domestic+Export volumes grew by a meager 5% in Motorcycles segment for Bajaj Auto. It is interesting to note that how exports have become an integral part of Bajaj – 44% of the overall sales in motorcycles is from Exports! Bajaj also reported the ever highest export volumes in a month in Apr’19.
  • The scene was a bit different in Commercial vehicles where both domestic & export volumes saw a dip. The overall segment reported a degrowth of -13% in Apr’19 v/s Apr’18.
  • Overall Exports (Motorcycles + CV) too reported a all-time high volume in Apr’19!

FY19 Sales Analysis – Two Wheelers

While double digit growth was expected for the Two Wheeler Industry in FY19; the growth was stunted to 5% owing to Increased Insurance Prices, Fuel Price Volatility, Negative Market Sentiments & Declining Scooter Segment. Scooters which was strongly becoming integral for every household; saw a tremendous fall in terms of the overall acceptance and the model which was largely affected was the Activa. Both Honda & Activa’s volumes fell by ~5% in FY19 v/s FY18. In overall; near to 2 Crore 11 Lakh Two Wheelers were sold in the Indian Market in the previous financial year!

A look at YoY Growth of the Two Wheeler OEMs and the Industry –

  • In overall; near to 2 Crore 12 Lakh Two Wheelers were sold in the Indian Market in the previous financial year!
  • Hero retained its No.1 Spot by quite a margin and commanded a Market Share of 36% in FY19. However; Hero’s Market Share dipped by -0.61% in FY19 vis-a-vis FY18.
  • Honda’s plan of nearing Hero’s volumes faltered in FY19 and rather the gap between the two OEMs widened. Hero sold >20 Lakh units more than Honda in FY19! Honda also saw the steepest fall in Market Share and it dipped by -3% in Fy19 (FY19 MS – 26% & FY18 MS – 29%).
  • Bajaj & Suzuki emerged as the outliers in the overall business scenario and posted a growth of 28.7% & 33.4% respectively.
  • Yamaha was only 591 units short of Royal Enfield! The gap has minimized now and going by the trend; Yamaha may soon replace Royal Enfield as the No.5 OEM. RE’s struggle was visible throughout FY19 and the only silver lining for RE was the launch of the Twins. However; Jawa may pose even bigger challenge in FY20.

Model-wise Sales Figures –

Top 10 selling Two Wheelers of March 2019

You may be thinking on why are we publishing a separate post on the Top 10 selling Two Wheelers of Mar’19 first and not the modelwise sales figures? The primary reasons are –

  • The Top 10 selling Two Wheelers sold a combine 9,48,272 units out of the overall 14,40,663 units of Two Wheelers sold in Mar’19! The Top 10 contributed ~66% of the overall 2-wheelers sold in the country.
  • The Top 3 two wheelers contributed to ~38% of the overall Two Wheeler sales!
  • The Numero Uno selling Two Wheeler Splendor recorded a sales of 2,46,656 units in Mar’19; which was almost same as the overall sales of the No.2 Two Wheeler OEM (TVS)!
  • A record fall in scooters sales seen. Activa’s YoY degrowth was a magnanimous -29%. To add to the misery, Activa was the only Honda model in the Top 10 list!
  • Bajaj’s strategy to focus on only bikes has worked a charm for the OEM. The revision in prices has paid off really well and the sales of Pulsar almost tripled & Platina almost doubled!
  • No Royal Enfield Classic in the Top 10 list? The decelerating sales of RE models (except the 650 Twins) have become a sore point for the legendary bike maker. And this is the scenario when the Jawa supply has still not taken off – what shall happen once Mahindra starts shipping Jawa bikes in full swing?

A look at the Top 10 selling models –

  • Apart from Pulsar, Platina & Access no other model registered a positive growth.
  • The overall sales of Top 10 models dipped -9% in Mar’19 v/s Mar’18.
  • Passion sales seems to be struggling and has almost halved. Platina effect?
  • Access emerges to be the dark horse and has almost matched Jupiter’s sales. The fight for No.2 scooter spot intensifies!

March 2019 Two Wheeler Sales – Snapshot

Two Wheeler Industry registered its steepest fall of FY19 in Mar’19 and recorded a de-growth of -17.3%! The effort of OEMs to rationalize the dealership stock was clearly visible. The Industry was also marred lower consumer sentiment, increased insurance premium and shrinking ‘scooter’ segment. As a matter of fact, the scooter sales declined for the first time in the last one decade! The decline in scooter sales largely affected Honda’s sales and the YoY drop for the Japanese major was -47%!

A look at YoY Growth of the Two Wheeler OEMs and the Industry –

  • The Top 3 OEMs recorded a fall in terms of YoY sales!
  • TVS overtook Honda’s volumes in Mar’19. This was nothing less of a shocker and no one would have anticipated that Honda’s volume could drop to this extent!
  • Bajaj, Yamaha & Suzuki reported a positive YoY growth. Bajaj was the most successful mass market bike maker in FY19 and Mar’19 too was a positive month for the Indian OEM.
  • Suzuki overtook Royal Enfield in Mar’19! Royal Enfield is continuously experiencing drop in the volumes and FY19 has been an extremely tough year. RE was the 5th biggest Two Wheeler OEM in Mar’18 – It’s ranked dropped to 7th in Mar’19!
  • Mahindra 2 Wheelers sales dropped -51.2%! Have they still not started shipping the Jawa bikes in full swing? The delay is just adding to the owes of the customers who’d have booked the Jawa.