Two-Wheeler Market Surges Past Passenger Vehicles Amid Festive Boom

Two-wheeler sales are expected to exceed passenger vehicle sales for the rest of the year, fueled by strong festive demand, rural payment boosts, and selective discounts. Inventory remains moderate, with motorcycles outpacing scooters in demand. Hero, TVS, and Royal Enfield show strong growth, while Bajaj falls behind.

The two-wheeler market is set to outshine passenger vehicles for the year's remainder, spurred by festive demand and improved rural sentiments, according to a report by PhilipCapital. The report highlighted that discounts are carefully applied in the two-wheeler sector, while they are gradually declining for passenger vehicles.

Rural demand gained momentum during the Diwali season as farmer payments from mandis and wedding festivities coincided, driving sales. The report predicts that two-wheeler growth will outperform passenger vehicles for the rest of the year as the robust festive demand continues.

Inventory levels are currently low to moderate, illustrating strong wholesale success in November, with optimism in retail expected to persist until mid-December. Motorcycles, in particular, have seen more demand than scooters, and buyers have been upgrading during the festive period. Hero MotoCorp, TVS Motor, and Royal Enfield led the festive growth, whereas Bajaj Auto slightly lagged behind.

Hero reported a remarkable over 40% YoY growth, supported by its popular models and strong rural and wedding season demand. TVS saw about 35% growth, riding high on the success of models like Raider and Apache, which outpaced scooters. Royal Enfield experienced 30-35% growth, bolstered by brand loyalty and attractive financing, while Bajaj Auto experienced modest growth due to a lack of new launches and customer confusion over multiple sub-variants.

PhilipCapital remains optimistic about the two-wheeler sector, suggesting that benefits from GST cuts, low prices, rural recovery, and new launches will sustain growth. (ANI)

(With inputs from agencies.)