India’s two-wheeler makers had a strong festive month. TVS crossed 7 lakh units for the first time and its electric scooter sales more than doubled. One detail deserves attention: Hero shipped about 1.45 lakh more vehicles to dealers than customers registered, which means October’s dispatch figures include a significant amount of stock building.
Two-wheeler makers reported strong October numbers on Sunday, supported by Navratri, Dussehra and the run-up to Diwali.
TVS Motor: record month
TVS Motor sold a record 7,00,134 vehicles in October, up 29% from 5,43,557 a year earlier. Two-wheeler sales rose 28% to 6,70,679, and domestic two-wheeler sales rose 22% to 5,14,764.
Two segments stood out. Electric two-wheeler sales rose 120% to 71,382, more than double last October. International sales rose 51% to 1,75,350. Three-wheeler sales rose 60% to 29,455.
TVS is now the fastest-growing large two-wheeler maker in India. It is growing domestically, in exports and in EVs.
Hero MotoCorp: dispatches ahead of retail
Hero MotoCorp, the largest two-wheeler maker by volume, reported dispatches up 16% to 7,34,403 units, from 6,35,808 a year earlier.
Vahan registration data shows a different number. Retail registrations, which count vehicles actually sold to customers, were 5,89,665 in October. That is about 1.45 lakh fewer than Hero shipped to dealers.
Dispatches usually exceed registrations ahead of the festive season, as dealers stock up before Diwali, and registration data can lag deliveries by a few days. But a gap of this size means a large share of Hero’s October dispatches went into dealer inventory rather than to buyers. If November retail sales are strong, that stock will clear. If not, dealers will have excess inventory and Hero’s dispatches may slow in the coming months.
It also fits Hero’s recent results. Its wholesale growth of about 10.5% in the September quarter was the weakest of the three largest two-wheeler makers, and it has been losing ground to TVS.
Bajaj Auto: exports drive growth
Bajaj Auto’s total sales rose 14% to 5,91,880, and exports rose 18% to 2,40,730. Bajaj now depends heavily on exports, which made up about 40% of October sales. Its domestic two-wheeler business has grown slowly, as it shifts towards larger motorcycles of 125cc and above. Strong export demand in Africa and Latin America, helped by the weaker rupee, is offsetting slower growth at home.
Royal Enfield: festive record
Royal Enfield sold 1,33,442 motorcycles in October, up 7%. Domestic sales rose 4% to 1,21,527, and exports rose 47% to 11,915. Its combined September and October sales reached a record 2,67,400, already more than last year’s entire festive season. Year-to-date sales from April to October rose 18% to 8,42,538.
Eicher’s commercial vehicle venture, VECV, also had a strong month, with sales up 34.9% to 10,861.
What the numbers show
Three trends stand out.
Electric two-wheelers are growing fast. TVS’s EV sales rose 120%, and industry-wide electric two-wheeler registrations rose 48% from a year earlier to 2.15 lakh. High petrol prices are speeding up adoption.
Exports are offsetting slower domestic growth. TVS, Bajaj and Royal Enfield all reported much faster export growth than domestic growth. The weak rupee and demand from developing markets are helping.
Dispatches and retail sales differ. Dispatch data shows what manufacturers ship to dealers. Retail registration data shows what customers actually buy. Hero’s gap is a reminder to compare both. The November retail figures, covering Diwali and the wedding season, will show whether this festive season was as strong as the dispatch numbers suggest.
About The Author
