November 2024 saw a mixed performance in the Indian two-wheeler market as major manufacturers realigned their inventories after a robust festive season. Despite a decline in dispatches, the year-to-date (YTD) performance remains strong, thanks to high sales during the October festive period. Let’s break down the trends, sales numbers, and insights for key players like Hero MotoCorp, Bajaj Auto, Royal Enfield, and TVS Motor Company.
1. Festive Season Surge and November Slowdown
During the festive season (October 3 to November 13, 2024), two-wheeler sales witnessed a massive surge. Retail sales during this period jumped 13.7% year-on-year (Y-o-Y), reaching 33,11,325 units compared to 29,10,141 units in 2023. This growth was fueled by:
- High demand for scooters and electric vehicles (EVs)
- Attractive festive offers and financing schemes
- Increased rural demand
However, in November, manufacturers faced a dip as they adjusted inventories. This realignment led to a single-digit decline in domestic sales for many players.
2. Hero MotoCorp: Leading but Facing a Dip
Hero MotoCorp, the world’s largest two-wheeler manufacturer, experienced a 7% drop in domestic sales. The company sold 439,777 units in November 2024 compared to the same month in 2023.
Key Insights:
- Domestic Sales Decline: 7% decrease due to post-festive adjustments.
- Exports Surge: Exports grew by 36%, showing strong performance in international markets.
- Electric Vehicles: Hero’s EV brand, VIDA, reported 11,600 retail sales during the festive season, gaining market share.
3. Bajaj Auto: Balancing Domestic and Export Markets
Bajaj Auto also saw a 7% decline in domestic sales, delivering 203,611 units compared to 218,597 units in November 2023.
Key Insights:
- Domestic Sales: Down by 7%, reflecting inventory realignment.
- Export Success: Exports increased by 26%, helping offset domestic losses.
- Overall Performance: Balanced by strong international demand for Bajaj’s popular models.
4. Royal Enfield: Domestic Challenges, Global Success
Royal Enfield, known for its premium motorcycles, faced a 4% decline in domestic sales. The company sold 72,236 units in November 2024 compared to 75,137 units in 2023.
Key Insights:
- Domestic Sales Decline: 4% drop in November.
- Export Boom: Exports soared by 96%, driven by strong demand for premium models in international markets.
- Popular Models: The success of models like the Meteor and Himalayan contributed to global growth.
5. TVS Motor Company: The Outperformer
TVS Motor Company stood out with a 6% growth in domestic two-wheeler sales, selling 305,323 units in November 2024.
Key Insights:
- Scooter Demand: A 22% increase in scooter sales boosted overall growth.
- Electric Vehicles: EV sales surged by 57%, reflecting strong consumer interest in eco-friendly options.
- Strong Product Lineup: Models like the Jupiter and iQube EV drove demand.
6. Year-to-Date (YTD) Performance
Despite the November dip, the overall YTD performance from April to November 2024 remains positive. According to data from the Federation of Automobile Dealers Associations (FADA):
- Retail Sales Growth: YTD sales rose by 13.54%, reaching 1,06,36,263 units.
- October Boom: October 2024 saw retail sales surge by 36.34% Y-o-Y, with 20,65,095 units sold.
Urban vs. Rural Trends:
- Rural Sales: Increased by 1.16% Y-o-Y in October.
- Urban Markets: Slight contraction of 1.41% Y-o-Y.
7. Industry Insights and Future Outlook
Anurag Singh, Managing Director at Primus Partners, explained that the post-festive dip in November is a normal adjustment phase for manufacturers. Despite this temporary slowdown, the two-wheeler industry’s overall outlook remains positive.
Key Drivers for Growth:
- Electric Vehicles: Increasing demand for EVs is expected to boost sales further.
- Rural Demand: A steady rise in rural sales will continue to support the market.
- New Product Launches: Upcoming models and technological advancements will attract buyers.
8. Two-Wheeler Segment Highlights: October 2024
October 2024 was a record-breaking month for the two-wheeler industry:
- Highest Wholesale Figures: 21,64,276 units, a 14.2% increase Y-o-Y.
- Retail Growth: Festive sales and attractive offers led to a massive 71.48% month-on-month growth from September.
9. Focus on Electric Two-Wheelers
Electric two-wheelers are gaining traction, with companies like TVS and Hero MotoCorp leading the charge. Factors driving this shift include:
- Government Incentives: Subsidies and tax benefits for EV buyers.
- Eco-Friendly Appeal: Growing awareness of environmental issues.
- Technological Advancements: Improved battery technology and charging infrastructure.
Popular Electric Models:
- TVS iQube EV: Known for its range and performance.
- Hero VIDA: Gaining market share with competitive pricing.
10. Challenges and Opportunities
While the market faces challenges like inventory management and fluctuating demand, there are several opportunities:
- Expanding Exports: Companies like Bajaj and Royal Enfield are leveraging global markets.
- Innovation: Continuous innovation in design and technology will keep the market dynamic.
- Customer Preferences: Understanding and catering to evolving consumer needs will drive success.
Conclusion
The two-wheeler market in India remains resilient despite a temporary dip in November 2024. Strong festive sales, rising demand for electric vehicles, and a positive YTD performance indicate a bright future. As manufacturers continue to innovate and expand into global markets, the two-wheeler segment is poised for growth.
Whether you’re a fan of premium motorcycles or eco-friendly scooters, something is exciting on the horizon. Stay tuned for more updates and insights into the world of two-wheelers!
I’m Ankz Kumar, the writer of Meraseason News. Here, I write content for tech, business, finance, automobiles, and education. My goal is to provide valuable, easy-to-understand content to readers so they stay informed and make smarter decisions.