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  • 13 апрель 2019
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In terms of market share, the top two of the pack,

In terms of market share, the top two of the pack, Hero MotoCorp and Honda Motorcycles & Scooters shed some muscles to help Bajaj Auto fatten its share in the pie size. Bajaj Auto’s market share expanded to 12 per cent in FY19 compared to 9.8 per cent in the previous year.

New Delhi: Amidst low consumer sentiment throughout the industry, two-wheeler segment could muster a single digit growth in the financial year ended March 31, 2019. According to the data released by the Society of Indian Automobile Manufacturers (SIAM) two-wheeler domestic wholesales grew by 4.86 per cent in the financial year 2018-19 at 21,181,390 units compared to 20,200,117 units dispatched in the previous fiscal.

In terms of market share, the top two of the pack, Hero MotoCorp and Honda Motorcycles & Scooters shed some muscles to help Bajaj Auto fatten its share in the pie size. Bajaj Auto’s market share expanded to 12 per cent in FY19 compared to 9.8 per cent in the previous years.
Bajaj Auto, the maker of Pulsar was the only manufacturer to enhance its market share to 12 per cent in last fiscal from 9.8 per cent in FY18. The company also recorded a strong double digit growth of around 28.7 per cent to 2,541,320 units sold last year. The year before it, domestic sales for Bajaj Auto was recorded at 1,974,577 units.
In terms of market share, the top two of the pack,


India's largest two-wheeler manufacturer, Hero MotoCorp maintained its pole position with a market share 35.9 per cent - a loss of over one percentage point from 36.6 per cent market share a year ago. In FY19, Hero MotoCorp sold 7,612,775 units with an increase of 3.12 per cent as compared to 7,382,718 units dispatched in the preceding year.

Following the trend, the second largest two-wheeler maker Honda Motorcycle & Scooter India (HMSI) also saw a decline of 2 per cent in market share over last year at 26.1 per cent. HMSI’s market share in Indian two-wheeler space stood at 28.6 per cent in FY17-18 as its sales contracted by 4.41 per cent to 5,520,617 units in FY18-19.
Rank
Domestic Sales
FY19
FY18
% change
1
Hero MotoCorp
7,612,775
7,382,718
3.12
2
HMSI
5,520,617
5,775,287
-4.41
3
TVS Motor Company
3,136,532
2,875,466
9.08
4
Bajaj Auto
2,541,320
1,974,577
28.7
5
Royal Enfield
805,273
801,229
0.5
6
India Yamaha Motor
804,682
792,812
1.5
7
Suzuki Motorcycle
668,787
501,203
33.44
8
Piaggio Vehicles
77,775
68,169
14.09
9
Mahindra Two Wheelers
4,004
14,752
-72.86
10
India Kawasaki Motor
3,115
1,799
74.51
Others
6,510
12,105
-46.2
Total
21,181,390
20,200,117
4.86
The sector survived various hurdles such as Kerala floods in August and IRDA’s orders to increase insurance premium of two-wheeler to five years at the time of buying. With the commencement of second quarter, volumes declined partly due to the high base of FY18, capacity constraints and inventory correction by OEMs. According to FADA, inventory remained at the higher side, and went up to 100 days in some regions.

The scooter sales declined for the first in the last one decade.. Increased insurance premium had also pressured buyers which led to about consistent 10-15 per cent drop in two-wheeler retail.

TVS retained third largest manufacturer in India with 3,136,532 units of dispatches in FY19 and posted a growth of 9.08 per cent as compared to 2,875,466 units in FY18. There has been a marginal increase of 0.4 per cent in its market share of the Chennai based company.
Suzuki Motorcycles posted the highest growth, an uptick of 33.44 per cent to 668,787 unit’s last fiscal.

In the first quarter, growth in motorcycles was primarily helped by the rural economy, driving 22.7 per cent growth in the below 110cc segment. However, in the second quarter, rapid growth was seen in 500cc-800cc segment, a jump of 130 per cent to 8,264 units. Royal Enfield contributed to the sales in this sub-segment.

Overall motorcycle sales grew 7.7 per cent to 13,599,678 units in fiscal ended March 31, leading to an increase of 2 per cent in its market share to 64.2 per cent of total two-wheeler sales.
Meanwhile, scooter sales marginally reduced for the whole year as the segment witnessed 25 percent fall in dispatches for the month of March. With the decline in sales, market share for scooters in the entire two-wheeler space also took a hit from 33.27 per cent in FY18 it came down to 31.63 per cent in FY19.
Segment
Sales FY19
Market Share FY19
Sales FY18
Market Share FY18
Scooters
6,701,469
31.63
6,719,909
33.27
Motorcycles
13,599,678
64.2
12,620,690
62.76
Mopeds
880,243
4.1
859,518
4.25
Total two-wheelers
21,181,390
20,200,117
The scooter sales declined for the first in the last one decade. According to analysts, the cost of ownership for scooters has increased over 10-12 per cent last year, impacting on the entire segment.
Two of the top five scooter selling companies witnessed growth while the sales for remaining scooter manufacturers shrunk. TVS Motor and Suzuki Motorcycles saw an increase in sales to 1,241,366 units and 615,520 units respectively.


HMSI, which has been top scooter seller, recorded negative sales of 3.69 per cent at 3,680,403 units. The company had sold 3,821,542 units in FY18.

The negative growth has come in this segment after almost a decade. According to analysts, the cost of ownership for scooters has increased over 10-12 per cent last year, impacting the entire segment.

The effect is likely to remain for this fiscal as well. Rakesh Batra, Partner and Sector Leader Automotive, EY India said, “In the two-wheeler (2W) segment, the high volume of FY19-end inventory is likely to depress production volumes in Q1 of FY20, though heavy wedding season in April-May 2019 could assist with inventory liquidations.”

Motorcycle sales volume to pick up in the second quarter on the back of a likely reduction in interest cost coupled with some increase in the disposable income of middle class on the back of a tax rebate announced in 2019 interim budget. However, the expectation of a below normal monsoon is likely to be a dampener, Batra explained. According to EY, two-wheeler sales are expected to grow by 6-8 per cent during FY20.

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