InvestorQ : How were the two wheeler sales numbers reported for the month of June 2022?
Riya Dwivedi made post

How were the two wheeler sales numbers reported for the month of June 2022?

shrinidhi Rajan answered.
1 year ago

One quick takeaway from the two wheeler sales numbers for the month of June 2022 is that the industry is finally getting a hang of the chip supply constraints. However, despite the problem of chip supplies stabilizing, sales in the two-wheeler segment remained largely muted due to tepid demand, as rural demand is yet to pick up in a substantial way. Most of the industry players are anticipating sustained growth over the next few quarters on account of favourable monsoons, sold kharif output and improvement in their supply chain.

For the month of June 2022, Hero Motocorp saw 3.35% growth in sales at 484,867 units of motorcycles and scooters. Now, these are wholesales that are sent from the factory outlets to the dealers and do not reflect the dealer sales, which is put out later by FADA. Domestic sales of Hero Moto were up 5.63% at 463,210 units in June 2022 but during the same period the exports of two wheelers were sharply down by 29.3% yoy at 21,657 units. The Motorcycle sales were higher in June 2022 but the scooter sales were lower for Hero Moto.

Industry veteran, Bajaj Auto, saw domestic sales of its two-wheelers falling by -19.63% in June 2022 on a yoy basis at 125,083 units. However, this was more than offset by a sharp growth in the export of two-wheelers which grew 23.19% on a yoy basis at 190,865 units. Among two-wheeler makers, Bajaj Auto has the best ratio of exports to domestic sales, de-risking its model. As a result, there was a marginal growth in the total sales of Bajaj Auto for June 2022, which saw 1.73% overall growth in two-wheeler sales at 315,948 units.

During the month, Honda emerged as the second largest two wheeler manufacturer in India with its total dispatches registering a 67% growth at 383,882 units for the month of June 2022. Domestic sales of HMSI for the month of June 2022 were up 65% at 355,560 units while the exports were also up at 28,322 units, albeit on a much smaller base. HMSI managed to post the most impressive growth in overall sales in the month of June 2022. During the month, it managed find alternate suppliers, reducing chip supply risks.

Finally, Chennai based TVS Motors registered a growth of 23% in two-wheeler sales in June 2022 at 293,715 units. Specifically, its domestic two-wheeler business registered a healthy growth of 33% in sales to 193,090 units for the month of June 2022. In terms of overall sales, the growth was entirely driven by scooters which saw sales nearly double yoy to 105,211 units. During this period, the sales of motorcycles remained flat to marginally lower at 146,075 units in June 2022.