Two-wheelers, PV sales roar on robust rural demand

Improved rural incomes and increased buying activity during the wedding season in May led to a significant surge in two-wheeler sales, while passenger vehicle sales clocked 13% growth over a low base of the year ago.

Original equipment manufacturers like Bajaj Auto, TVS Motor Co. and Hero MotoCorp witnessed domestic twowheeler volumes grow by 102%, 32%, and 9%, respectively. Electric two-wheelers volumes grew faster than internal combustion-engine (ICE) vehicles. For Eicher Motors, sale of its premium motorcycle brand Royal Enfield rose nearly 33% on the back of improving supply of semi-conductor chips, which led to muted sales in the first quarter of last year.

“May is a crucial month in terms of sales for two-wheelers, given the all-important wedding season which propels sales of two-wheelers, especially in rural areas”, equity research firm Elara Capital said.

May witnessed a rebound in passenger vehicle volumes with leading Indian car manufacturers, including Maruti Suzuki, introducing new models to the market.

Wholesale dispatches across the passenger vehicle industry surged ahead of retail sales as manufacturers fulfilled existing orderbooks and stocked more vehicles in the showrooms. While wholesale and retail sales reached historical highs in May, with 334,800 units and 325,258 units, respectively, month-onmonth improvement in PV sales was comparatively limited.

Retail sales also continued to lag wholesales for the second consecutive month of this financial year.

Maruti Suzuki said demand was primarily driven by the rural markets in May. India’s leading carmaker also improved its market share by 1% during the month to 43% of the total PV sales, and is commanding more than 20% share of the sport utility vehicle (SUV) market steered by new launches. However, Maruti saw a sharp dip in sales of its micro-car segment, primarily due to a decline in sales of the Alto.