Two-wheeler sales recovery seen in May with several firms posting double-digit growth

Key highlights:

• Except for Bajaj Auto, top two-wheeler companies posted high double-digit sales growth in May
• Hero MotorCorp sales in the month of May had grown by 8.7%
• Bajaj Auto's sales declined by 10% in May

Two-wheeler sales in India seem to have finally recovered from the impact of demonetisation and the Bharat Stage III ban. Except for Bajaj Auto, most of the top two-wheeler companies posted high double-digit growth in sales in the month of May.

Hero MotoCorp

The largest two-wheeler manufacturer in India, Hero MotorCorp, on Thursday announced that its sales in the month of May had grown by 8.7% as it's two-wheeler sales rose to 6,33,884 units in comparison to 5,83,117 units in the same month last year.

ALSO READ: Hero MotoCorp sales rise by nearly 9% in May; commences production at Bangladesh plant

The company had posted a 3.5% decline in sales during April as it sold 5,91,306 units from 6,12,739 units in the same months last year.

Honda Motorcycle and Scooter India

Honda Motorcycle and Scooter India (HMSI) on Thursday reported 23% increase in total sales at 5,37,035 units in May. It had sold 4,36,328 units in the same month last year.

In the domestic market, sales grew 23% to 5,10,381 units last month as against 4,15,860 units in May 2016, the company said in a statement.

In April too it has posted a large 34% growth in sales as it sold 5.7 lakh two-wheelers during the the month.

ALSO READ: Two-wheeler sales betting for a comeback with normal monsoon season

TVS Motor Company

TVS Motor Company posted a sales growth of 16% during the month of May 2017, with total sales increasing from 243,783 units recorded in the month of May 2016 to 282,007 units in the month of May 2017.

Total two-wheeler sales increased by 15.6% from 238,320 units recorded in May 2016 to 275,426 units in May 2017. Domestic two-wheeler sales grew by 16.3% increasing from 206,886 units in May 2016 to 240,527 units in May 2017.

Scooters sales of the Company grew by 30.9% increasing from 65,434 units in May 2016 to 85,681 units in May 2017. Motorcycles sales grew by 22.3% increasing from 96,485 units in the month of May 2016 to 118,014 units in May 2017.

This was a big improvement from 4% growth TVS Motor had posted in April as it has sold 2,05,522 units during the month from 1,97,629 units during the same period last year.

Source: Zeebiz

Royal Enfield

Eicher Motors' motorcycle unit Royal Enfield posted a 25% growth in total domestic sales during the month of May. Royal Enfield continued its high growth trajectory as it sold 60,696 units in May 2017 in comparison to 48,604 units during the corresponding month last year.

ALSO READ: Royal Enfield continues high growth path with 25% rise in sales in May

In April, Royal Enfield too posted a 25% growth with 60,142 units sold from 48,197 unit in the corresponding period last year.

Yamaha Motor

India Yamaha Motor on Thursday reported 10.65% increase in sales at 69,429 units in May. The company had sold 62,748 units in May 2016, India Yamaha Motor said in a statement.

Yamaha's new 249 cc mid-class motorcycle FZ25 along with BS-IV variants of scooters and motorcycles have been instrumental in boosting its sales, it added.

This is an improvement from the 8% growth it has posted last month in domestic sales as it sold 68,827 units during April 2017 as compared to 63,927 units during the corresponding period last year.

Bajaj Auto

However, Bajaj Auto was the only one to post a decline in sales during the month. The two-wheeler major on Friday reported a 10% decline in total vehicle sales in May at 3,13,756 units.

The company had sold 3,47,655 units in the same month last year. Its motorcycle sales also declined 10% at 2,77,115 units as against 3,07,344 units sold in May last year, Bajaj Auto said in a BSE filing.

The rise during the month of May could have been assisted by the wedding season during the month.

With expectations of normal monsoons and rains already starting in some regions in the country, two-wheeler sales are expected to grow higher in the coming months due to the rise in rural demand.

Besides this, with the goods and service tax (GST) for vehicles in line with the current taxation rates, there is expected to be no visible impact on the two-wheeler industry.

(With inputs from PTI)