MUMBAI: Motorcycle sales outperformed scooter sales in June due to greater demand from rural markets and tier-II and tier-III cities, and the development is expected to continue in the near time period as round 50 per cent of the bike demand comes from the agricultural markets, in accordance to a report by India Ratings (Ind-Ra).
Automobile sales quantity in June surged a whopping 580 per cent over May led by the pent-up demand and demand for private mobility to preserve social distancing with the easing of lockdown and public transport solely partially open, the rating agency said in the report on Wednesday.
It additionally expects restoration in demand to happen solely by the center of the subsequent monetary year.
Two-wheelers have demonstrated indicators of a sooner restoration than different trade sub-segments, as forecasted by Ind-Ra, on account of a steady demand from the agricultural phase in addition to two-wheeler being the most-affordable automobile, favouring private mobility, it said.
During the June 2020 quarter, two-wheeler home sales declined 74 per cent y-o-y, whereas passenger automobile (PV) sales dipped 78 per cent and industrial automobile (CV) sales fell 85 per cent, it added.
In the two-wheeler phase, bike sales quantity declined 35 per cent y-o-y as in contrast with a 47 per cent y-o-y drop in scooter volumes in June, said the report.
As in opposition to this, bike sales quantity in the primary quarter of 2019-20 had been down 73 per cent and scooter sales declined 76 per cent in the course of the interval, it said.
Stating that bikes accounted for round 69 per cent of the whole two-wheeler sales in June as in contrast with 66 per cent in the year-ago interval, Ind-Ra said bikes outperformed scooter sales in June due to greater demand from rural markets and tier-II and tier-III cities.
The rating agency expects this development to continue in the near time period, as round 50 per cent of the bike demand comes from the agricultural markets.
It added that the sales quantity of bikes up to 125 cc, having a powerful presence in rural and semi-urban markets, declined solely 28 per cent in June as in contrast with the 47 per cent y-o-y decline in sales quantity of bikes above 125 cc.
With a powerful rural focus and the portfolio focussed in the direction of bikes under 125 cc, Hero MotoCorp Ltd’s two-wheeler market share was up at 42 per cent in the June quarter of 2020-21 as in opposition to 36 per cent market share a year in the past, it said.
A decrease channel stock meant Hero’s manufacturing stage in June was at 64 per cent of June 2019 as in contrast with 50 per cent for the general two-wheeler trade, the report acknowledged.
In June, home car sales quantity (excluding industrial autos) declined 41 per cent y-o-y, with PV and two-wheeler sales declining 50 per cent and 39 per cent over the year-ago interval, respectively, said the report.
It is a pointy enchancment from April and May when the whole sales volumes had plunged 100 per cent and 85 per cent y-o-y, respectively, amid the coronavirus-induced lockdown, it said including that Ind-Ra expects bettering rural sentiments and continued desire for private mobility over public transport or shared mobility to stay the important thing progress drivers in the near time period.
In the PV phase, automotive sales fell 58 per cent y-o-y in June whereas utility autos (UVs) registered solely 31 per cent y-o-y decline, in accordance to the report.
Over the previous few years, prospects have displayed an rising desire for UVs over automobiles, as seen by way of a 0.5 per cent quantity enhance in UVs in 2019-20 whereas the general trade fell 18 per cent y-o-y, Ind-Ra said.
This development continued in June 2020 as nicely. The new mannequin or variant launches have additionally been in this sub-segment. In the automobiles sub-segment as nicely, the decline in the entry-level ‘mini’ hatchback sales quantity was decrease than the general sub-segment, as customers continue to have a look at decrease ticket objects, the report acknowledged.
According to Ind-Ra, CV sales quantity plummeted 85 per cent y-o-y in the primary quarter of 2020-21, with the next decline of 94 per cent in medium and heavy industrial autos (MHCVs) in opposition to the 80 per cent y-o-y decline in light industrial autos (LCVs).
Apart from disruptions due to COVID-19, MHCV demand continues to be impacted by the continued total slowdown in financial exercise coupled with the surplus accessible capability in the system. LCVs have fared higher on rising demand than MHCVs for last-mile connectivity, it said.