Market leader Hero MotoCorp reported a 9% year-on-year increase in sales to 508,309 units. The company – which has scheduled a record number of launches in this financial year to recoup market share lost amid sluggish sales during the pandemic – expects the demand momentum to remain healthy in the coming months.
Forecasts of a normal monsoon, government spending on infrastructure projects and healthy procurement of wheat are expected to put more money in the hands of farmers and spur demand this year. “The momentum is expected to continue in the coming months, driven by an uptick in customer sentiments, forecast of normal monsoon and a host of new launches in the premium segment,” Hero MotoCorp said in a statement.
Chennai-based TVS Motor Company saw a growth of 32% year-on-year to 252,690 units in May. Bajaj Auto saw sales double to 194,811 units during the month.
“The two-wheeler segment is witnessing a turnaround, with healthy growth in sales which points to some respite on the rural demand recovery side,” said Dhruv Mudaraddi, research analyst at Stoxbox. “The marriage season and reasonably good procurement of wheat in the current cycle likely aided the robust performance of two-wheelers last month.”
Royal Enfield also saw a 32% year-on-year growth, selling 70,795 units in May. Mudaraddi said the trend of premiumisation in the two-wheeler segment continues with consumers preferring vehicles with more features and higher engine capacity.Royal Enfield CEO B Govindarajan said the company’s new launches in the midweight segment have been received well.
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