Domestic two-wheeler sales rose double digits from a year earlier, an indicator that reflects the financial health of India’s rural economy and the needs of the country’s largest, loosely defined consumer group. such as low and middle-income households.
Two of India’s top three listed bicycle makers beat domestic sales expectations in February as chip shortages eased, while passenger car sales continued to grow on demand for commercial vehicles.
Domestic sales of two-wheelers, an indicator of the financial health of India’s rural economy and demand from the country’s largest consumer group (loosely defined as low- and middle-income households), grew by double digits year over year.
Analysts expect domestic two-wheeler sales to rise, driven by the wedding season which boosts demand and eases chip shortages.
TVS Motor Co Ltd saw the strongest domestic sales growth of around 28%, while Bajaj Auto Ltd grew 24.7% and Hero MotoCorp Ltd grew more than 15%.
Bajaj missed analysts’ expectations for domestic sales growth of 45% and 43% at Emkay Global and Nomura, while Hero and TVS beat brokerage estimates.
However, the total monthly sales of Bajaj and TVS Motors were weighed down by weaker exports, and the Economic Times reported that Bajaj was considering production cuts.
Economic fluctuations in Nigeria, other African countries, and Latin American countries have hurt the exports of Indian bicycle manufacturers.
In the passenger vehicle (PV) segment, sales of market leader Maruti Suzuki India Ltd increased by 10.1%, while Tata Motors Ltd increased by 7.4%.
Demand for larger, more popular, and more expensive utility vehicles was strong, with sales of Maruti Suzuki increasing by 32.3% and sales of Mahindra and Mahindra Ltd. by about 10%. Sales and strong SUV sales were helped by improved chip inventories.
Meanwhile, commercial vehicle sales recorded double-digit gains as fleet operators and logistics companies continued to shop ahead of new fuel emissions standards which come into effect on 1 April, when buses and trucks become more expensive.
Ashok Leyland Ltd’s sales increased by 26.7%, while Eicher Motors Ltd’s monthly sales increased by 24.5%. Market leader Tata reported a 2.6% drop in commercial vehicle sales.