Two-Wheeler Sales See Minor Revival In January 2013

After witnessing a sort of slowdown in the past few months, two-wheeler manufacturers seem to have managed some revival in the new year. At least, the sales volumes for January 2013 seem to indicate the same. In our article on the auto sales figures for December 2012, we had categorically stated that the sales volumes have declined, and this was true of all the listed entities. In January 2013, though, the sales have turned around and the numbers for all the leading companies have been good.

In this period, Hero MotoCorp has posted its highest ever sales figures for any month. The company sold 557797 units as against 520272 units sold in January 2012. Its management has stated that better sales figures from Ignitor and Passion X Pro have helped Hero notch up better numbers.

The story has been same for Bajaj Auto, which sold 347624 units in the month as compared to 337875 units sold in January 2012. Again, this has been the highest ever sales in the month of January. In this case, exports have been the main driving factor for sales growth. The company managed to export 128482 units as against 116996 units in 2012. However, despite the highest ever sales in January 2013, the April 2012 to January 2013 sales volume is still marginally lower by 1.02% as compared to that in the similar period last year. The decline during the August 2012 to September 2012 is the primary reason behind the same.

As regards TVS Motor Company, it posted a marginal increase of 1.39% on a YoY basis in January 2013, selling 175931 units as compared to 173514 units in January 2012. In contrast with the performance of Bajaj, here the domestic sales helped TVS to put in a better performance. In fact, its exports in January 2013 declined to 17406 units from 18008 units in January 2012.

Honda (an unlisted entity) also posted a good performance, with the highest growth (21.63%) YoY) among its peers. The company’s performance has been good, with consistent growth in the past year. In January 2013, it posted sales volume of 230304 units as against 189353 units in January 2012. A noticeable factor is that its motorcycle sales this time stood higher at 118760 units as against just 76850 units in January 2012. The scooter sales, though, saw a marginal decline.

Overall, the sales figures of most of the companies have witnessed a marginal improvement, which is encouraging. The expected decline in interest rates seems to have been the primary factor behind this. Further, the anticipation of an increase in excise duties in the upcoming budget would also be playing on buyers’ minds. Hence, we expect the February 2013 sales figures to continue with this momentum. Of course, sustainability for a longer duration remains a concern.