India’s two-wheeler market has witnessed another stellar quarter, showcasing impressive double-digit growth year-on-year in the second quarter of this fiscal year. Meanwhile, three-wheelers also reported respectable high single-digit growth, according to a recent report. 🚀
📊 Mixed Trends Across Segments
Despite the positive figures for two-wheelers, wholesale volume trends were mixed across various segments. The original equipment manufacturers (OEMs) reported a varied performance in revenue growth and margins during the July-September period, with two-wheelers standing out as the top performers. 🛵💨
🔍 Market Insights
- Passenger Vehicles (PVs) saw a slight decline in volume, while Commercial Vehicles (CVs) also struggled due to factors like prolonged monsoons and a slowdown in infrastructure activities, leading to lower fleet utilization.
- The report by BNP Paribas emphasizes a long-term positive outlook for passenger vehicles, despite the temporary weaknesses in commercial vehicles.
🏆 Market Share Shifts
Among the two-wheeler manufacturers, Honda Motorcycle & Scooter India (HMSI) gained the most retail market share, while Hero MotoCorp (HMCL) faced the largest loss in Q2 FY25. In the passenger vehicle sector, Mahindra & Mahindra gained traction, whereas Maruti Suzuki and Hyundai saw declines. 📉
📅 Future Projections
The report forecasts a strong performance ahead, expecting high single-digit to double-digit year-on-year revenue growth for two-wheelers, while revenue for passenger vehicles (excluding Mahindra) may remain flat or experience slight declines in Q2 FY25.
Management commentary on high levels of passenger vehicle inventory, rising discounts, and the festive demand outlook will be crucial to monitor in the coming months. 🎉
If you look around, you will see that rich are getting richer.
— Akshat Shrivastava (@Akshat_World) January 7, 2023
The 2 wheeler sales in India has fallen by 36% since 2018.
While, Mercedes sales in India is up 64% this year.
Source: Dr Rajan's Paper.
🌍 Global Demand Concerns
However, global weakening auto demand and recent guidance cuts by international peers raise concerns. The risk of Jaguar Land Rover (JLR) potentially lowering its FY25 guidance could impact the overall sentiment in the market. 🌐
🚗 Domestic Sales Snapshot
According to the latest SIAM data, domestic passenger vehicle sales stood at 3,15,689 units in September, slightly down from 3,16,908 units in the same month last year.
As the two-wheeler segment continues to thrive, industry players are gearing up for what looks to be a robust season ahead. Stay tuned for more updates! 🔍✨