April 2019 Two Wheeler Sales – Snapshot

Two Wheeler Industry saw another bad month and registered a YoY de-growth of -16.3% in Apr’19. Apart from TVS & Bajaj in the mass market players; all other OEMs reported a negative growth in Apr’19. Honda saw the steepest YoY fall at -32% and its market share dropped a hefty -6% in Apr’19 v/s Apr’18. With the trend moving towards Motorcycles; Honda may see its worst year in FY20. Surprisingly while collating the data we saw ZERO Mahindra Two Wheelers shipped in Apr’19. Still not able to understand if we’ve made any mistake in our compilation!

Another success story gone wrong was of Royal Enfield’s. The classic bike maker is consistently losing ground in the past several months. Even though the Interceptor twins have done wonderfully well; the drop in sales of Classic 350 has hit the OEM real hard.

It’s clearly evident from the data that Honda’s loss has been TVS & Bajaj’s gain. Will it continue in coming months?

Apr’19 Market Share of OEMs –

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 –