Despite hefty discounts and other promotional schemes in November, consumers chose to stay away from buying two-wheelers in enough numbers as sales slipped by an over 15 per cent year-on-year (y-o-y), the 12th consecutive month of decline.
Management of top manufacturers including Hero MotoCorp and TVS Motor Company said demand slipped as Diwali fell in October, which typically accounts for over 40 per cent of the festive season sales. In October however, despatches to dealers had declined by 14 per cent y-o-y but the companies had claimed that retail sales — vehicles sold by dealers to customers — had improved. According to Federation of Automobile Dealers Association (FADA), retails of two-wheelers had grown by 5 per cent y-o-y in October.
Hero MotoCorp and Bajaj Auto reported 16 per cent y-o-y and 14 per cent y-o-y dip in volumes in November, while Honda Motorcycle posted a 5 per cent y-o-y dip.
TVS Motor Company and Royal Enfield’s sales fell 26 per cent y-o-y an 8 per cent , respectively. “Diwali falling a month earlier and planned adjustment of BS-IV stocks is reflecting in the sales growth difference between November 2018 and November 2019,” a TVS Motor spokesperson said. So far this fiscal, two-wheeler sales have fallen over 16 per cent y-o-y.
Most manufacturers are producing lesser units of BS-IV models as from April 2020, only BS-VI compliant units can be sold.