Urban markets to drive the sales of motorcycles and scooters
In the next few months as more states ease lockdown restrictions, Urban markets will drive sales of motorcycles and scooters, helping the segment post growth in the ongoing financial year, a top executive at Honda Motorcycle & Scooter India (HMSI) said.
Owing to the coronavirus pandemic, Two-wheeler sales in the local market have declined by nearly a third in the last two years.
- Sales fell 18% to 17.42 million units in fiscal 2020,
- And again by 13% to 15.1 million units in the last financial year ended March 31, 2021.
Now, there is a spurt in demand as markets reopen after the easing of Covid-19 restrictions Said by HMSI, India’s second-largest two-wheeler maker.
Also, Sales & marketing director Yadvinder Singh Guleria told ET. “In urban areas, sales are recovering sharply … We see a spurt in sales with offices opening up, even with a restricted workforce.”
Retail sales and inquiries at the local two-wheeler unit of Japan’s Honda Motor have increased 2.7 times this month compared with May, the sales & marketing head said.
Rural markets had briefly helped support two-wheeler sales post the easing of the nationwide lockdown last year and were again expected to gain pace during Navratri at the start of this fiscal year. However, the second wave of the pandemic, which had spread deep into the hinterlands, impeded festive sales and demand on the commencement of the marriage season in North and Central India in April 2021
HMSI said that he does not expect a significant impact on its business due to the deferment of purchases in rural areas. At last, Investment plans of business partners are on track to expand the distribution network for these products, as the company aims to capture a double-digit share of this fast-growing segment (350-500 cc) in the medium term.