Two-wheeler sales witnessed a mixed trend in June, with Honda Motorcycle & Scooter India (HMSI), TVS Motor Co. and Hero Motocorp reporting growth while Bajaj Auto saw volumes drop. The month saw hectic activity given that companies were dealing with the last month before the goods and services tax (GST) kicked-in, from July 1 across India except for Jammu & Kashmir.
In the domestic market, TVS Motor Co. sold 228,518 units last month, up 10.4 percent from 207,012 vehicles sold last June, while exports rose 20.8 percent to 40,120 units, resulting in an overall growth of 11.8 percent.
Hero Motocorp sold 6,24,185 units in India, up 14 percent from 5,49,533 sold last June. "The company sold 547,185 units of motorcycles during the month of June, thereby growing by 13 percent over the corresponding month last year. Hero MotoCorp sold 77,000 scooters in June, registering a 22 percent growth over the corresponding month in 2016," Hero Motocorp said in a statement on Monday.
HMSI reported a modest 2 percent growth in domestic sales at 416,498 units from 407,979 vehicles in June 2016, while exports rose 47 percent to 28,215 units and announced price revision.
"Starting July 1, Honda is passing on the GST benefit applicable in most of the states to our valued customers who now get significant savings going up to Rs. 5,500 depending on the model and the state of purchase," Yadvinder Singh Guleria, Senior Vice President - Sales and Marketing, HMSI said.
Bajaj Auto's two-wheeler sales declined 25 percent on to 2,04,667 units in June; the fall in domestic sales was 33 percent while exports took an 8 percent hit. "The company cut the vehicle prices by upto Rs 4,500 a fortnight before the GST implementation despite which the sales have remained weak. We have a neutral rating on the stock," Shrikant Akolkar, Research Analyst- Auto & Auto Ancillary, Angel Broking,said in a note on Monday.
Royal Enfield sales grew 25 percent to 63,160 units as against 50,682 vehicles last June.
