The implementation of the goods and services tax (GST) appears to have had a positive impact on automobile sales. In line with expectations, two-wheeler makers have reported robust growth for July, according to data released by the individual companies on Tuesday.
Eicher Motors, makers of Royal Enfield motorcycles, sold 64,459 units in July, a growth of 21 percent over 53,378 motorcycles sold last July, enabling the company's share price to hit a fresh 52-week high of Rs 31,532 before closing 4.65 percent higher at Rs 31,437 on the BSE.
Also read: Maruti Suzuki records 20.6% growth; Toyota scripts best-ever showing
Suzuki Motorcycle India Private Limited (SMIPL), the subsidiary of Japanese automobile firm Suzuki Motor Corporation, also had a good month, with overall sales rising 62 percent to 40,038 units from 24,703 units in July 2016. Domestic sales rose even higher, to 78 percent, though the company did not provide the break-up.
Hero Motocorp sold 6.23 lakh units, up 17.1 percent from 5.32 lakh two-wheelers sold in July last year, "despite sluggish sales for the first few days of the month due to the transition to GST."
Chennai-based TVS Motor Co. saw its domestic two-wheeler volume sales rise 6.2 percent to 2.19 lakh units last month from 2.06 lakh vehicles sold in July last year, fuelled mainly by scooter sales that grew at a higher clip of 35.8 percent as against 15.1 percent for motorcycles.
Two-wheeler exports grew 31.4 percent for the company, enabling it to post overall growth (including three wheelers) of 9 percent to 2.71 lakh units.
Also read: Why Indians will pay more for buying petrol and diesel starting August 1
Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) posted 19 percent growth in domestic business at 5.11 lakh units last month in comparison to 4.29 lakh units in July last year, according to a statement released by the company on Tuesday. Exports rose 34 percent YoY to 32,569 units.
Bajaj Auto is yet to reports its volume sales data for the month.
Hero Motocorp and Maruti Suzuki India Ltd. were among the top gainers on Tuesday on the BSE.
