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 –