NEW DELHI: The domestic two wheeler (2W) industry volumes in April-May 2024, rose 19 per cent YoY. While domestic motorcycle volumes increased 18.5 per cent, scooters grew 21.6 per cent and mopeds rose 16 per cent. One key highlight in the current fiscal is that Honda Motorcycle and Scooter India (HMSI) has its supply constraints resolved and gained the most market share across segments in the first two months of FY25. The overall domestic 2W market share inched up to 28 per cent, just 200 basis point below that of market leader Hero MotoCorp (HMCL).
Market share movement in April-May 2024 in the 100cc segment shows that within 12 per cent growth the low base for the Shine100 is driving robust growth for HMSI in this segment and HMCL has grown largely in line with the industry at 11 per cent YoY. Both BJAUT and TVSL have underperformed in this segment, HMSI’s market share has improved to 7 per cent while HMCL has lost share to 79.4 per cent. The 125cc segment posted 19 per cent YoY growth in the first two months. While HMSI has significantly outperformed the segment with 44 per cent YoY growth as its supply constraints are now behind, TVSL has outperformed peers by a wide margin with 34per cent YoY growth.
The volumes of Bajaj Auto declined 5 per cent YoY in this segment, HMCL volumes grew just 9 per cent YoY despite the launch of the Xtreme125R. According to Rakesh Sharma, ED, Bajaj Auto, this year the industry is very close to pre-Covid-19 levels. “The top half has reached it, hree-wheelers have reached it and the bottom half is showing good signs for the past two or three months. It’s a reflection of the recovery in the economy and money reaching the pockets of the common man,” says Sharma. Sharma goes on to add that unless there is a black swan event, the segment should see 7-8 per cent average growth with the top half growing at 11-12 per cent and the bottom half growing at 5-6 per cent. “ We may not surpass the 2018-19 peak because the prices have increased by by 35-40%. We’ll come within striking distance next year,” says Sharma.
The Xtreme 125R posted 14000 units in May 2024 and continues to see a much slower ramp-up. In the 125cc segment, HMSI has gained the most share to 40.4 per cent. Even TVSL has gained share to 14.4 per cent. On the other hand, HMCL has lost 190bp share to 18.7 per cent, and BJAUT has lost share to 26.4 per cent (over a high base).
The 150-250cc segment posted strong 46.5 per cent YoY growth in the first two months of the fiscal, partly aided by a low base and new launches even as HMSI was facing significant supply constraints at the beginning of last year to the extent that it had literally sold nil vehicles in this segment in Apr-May’23.
With supply constraints having been resolved now, it sold 74.8k units in April-May’24 and recovered its entire market share to 20 per cent, BJAUT posted healthy 35 per cent YoY growth on the back of its new launches and on the other hand, both HMCL and TVSL have underperformed in this segment with about 9 per cent YoY growth each. Given HMSI’s strong comeback, TVSL has lost 23 per cent share, BJAUT 32.8 per cent and even HMCL has lost share to 2.6 per cent.
The scooter (ICE) segment posted 21.6 per cent YoY growth in April-May’24. Both TVSL and Suzuki have outperformed industry growth, with 26 per cent/36 per cent growth, respectively. Even HMSI saw healthy 18 per cent YoY growth while HMCL continues to underperform with a 7.5 per cent YoY decline in volumes. Overall, TVSL has gained share to 22 per cent in scooters and Suzuki has gained to 17 per cent. On the other hand, HMSI has lost share to 50.9per cent, and HMCL has lost share to 4.8 per cent.