Two-Wheeler Sales Drop In March 2020 Amid COVID-19 Outbreak
The lockdown in the country has forced a lot of two-wheeler makers to hold inventory and stop production.
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The automobile industry is in a dire situation now as all the manufacturers have shut shop due to the coronavirus outbreak. Things couldn’t get worse as the majority of the two-wheeler manufacturers in India have suffered a major drop in sales for the month of March.
Brands like Hero Motocorp, Bajaj Auto, Suzuki, and TVS Motors have seen a drastic fall in their year-on-year sales figures for March 2020. Except for Honda, which saw an increase of 5 percent.
The Indian government had announced a national lockdown amid which all the automobile manufacturers had to stop production and distribution to stop the spread of the virus. Two-wheeler showrooms and service centres across the country have also been asked to cease operations.
Considering the above, the drop in sales isn’t a surprise.
Hero Moto Corp
The world’s largest two-wheeler manufacturers, Hero Moto Corp has registered a decline of 42 percent in its domestic and export sales combined for March 2020.
The domestic sales stood at 3,16,685 units, a drop of 42.7 percent compared to the figures in March 2019 which stood at 5,53,302 units.
In terms of total sales figures for the fiscal year 2019-20, the company sold a total of 64,09,719 units of motorcycles and scooters as compared to 72,39,460 units in 2018-19. A drop of 11 percent.
Bajaj Auto
Indias largest exporter of two-wheelers, Bajaj Auto, has also seen its market decline.
The company registered a 55 percent drop in its domestic sales as it was able to sell 98,412 units as compared to 2,20,213 units which it sold in March 2019.
Bajaj's exports were higher last year in March at 1,12,564 units which is 9 percent more than the 1,03,325 units exported last month. The drop in numbers could also be because of the lockdown coming into effect at the end of the month.
Overall, Bajaj was able to dispatch 42,36,873 (domestic+export) two-wheelers this year, which is a drop of 7 percent against 39,47,568 units dispatched in March 2019.
TVS Motor Company
TVS Motor Company also recorded a sharp drop in its domestic sales in India for March 2020.
In March 2019, TVS sold 2,47,694 units in the domestic market while at the same time this year it was able to sell only 94,103 two-wheelers suffering a 62 percent drop.
The company sold a total of 1,33,988 two-wheelers in March 2020 suffering a 56.6 percent drop compared to 3,10,885 units sold in March 2019.
The company said there has been a significant loss in production due to the lockdown and stock in the factory could not be dispatched due to this.
Honda Motorcycles & Scooters India
Honda Motorcycles & Scooters India (HMSI) was one of the few two-wheelers manufacturers to come out with a positive result during these times.
The Japanese automobile makers managed an 11 percent growth in the overall sales in March 2020 when compared to the same time last year. In terms of numbers, it managed to sell 2,61,699 units last month as opposed to 2,49,136 units in March 2019.
Domestic sales also registered a 5 percent growth according to HMSI. The company sold 2,22,325 units in the domestic markets which is more than last year's figure of 2,45,699 units.
The country’s largest scooter seller had an overall turnout of 50,31,297 two-wheelers from April 2019 to March 2020.
Royal Enfield
Royal Enfield also posted dismal figures owing to the poor sentiment in the Indian two-wheeler market.
It managed to sell 32,630 units this year in March which is a 44 percent drop if you compare it with the 58,434 units it sold during the same period in 2019.
On a positive note, the company did manage to bump up exports by 33 percent. In March 2019 Royal Enfield had dispatched 2,397 units whereas this year it managed 3,184 units.
The overall performance of the company in March is also not a pretty sight. It lost 41 percent in sales for the month of March 2020 as it only sold 35,814 units. Last year at the same time, its overall sales figures were 60,831 units.
Suzuki Motorcycle India
Suzuki Motorcycle India also saw a 39 percent drop in its overall sales. The company sold 40,636 units this year in March which is a steep drop compared to last year's figure of 67,025.
Domestic sales also didn’t show any positive signs as the company only sold 33,930 units this year in March. This number at the same time last year was 58,701. That’s a 42 percent drop.
The bigger picture looks a bit better. The company’s overall performance in the fiscal year 2019-20 saw it grow by 5.7 percent with total sales of 7,90,397 units. The company sold 7,47,506 units in FY19.
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