A majority of two-wheeler makers, together with Hero MotoCorp and TVS Motor, on Monday, reported a double-digit decline of their home wholesale numbers for November, as automobile makers resorted to stock adjustment forward of the transition to BS-VI compliant automobiles.
Market chief Hero Motocorp stated its home gross sales final month declined by 15.8% to over 5.05 lakh items. The corporate had posted gross sales of extra that six lakh items in November 2018.
“Following record festive retail sales in October 2019 and lowest-ever inventory in two-years, the November 2019 despatch numbers reflect Hero MotoCorp’s intent to ensure a smooth transition to BS-VI norms,” the corporate stated in a press release.
Stating that it had scaled up the manufacturing of its BS-VI automobiles, the corporate added that it had stopped manufacturing of greater than 50 variants of its BS-IV vary of merchandise. The corporate, nevertheless, noticed a 17% improve in automobile exports to 10,781 items.
Chennai-headquartered TVS Motor Firm stated its home two-wheeler wholesales final month dropped 26.5% to about 1.91 lakh items from about 2.60 lakh items. Two-wheeler exports, nevertheless, grew by 24% from 46,889 items in November 2018 to 58,128 items in November 2019. “Shifting of Diwali season to the earlier month and planned adjustment of BS-IV stocks is reflecting in the sales growth difference between November 2018 and November 2019,” the corporate stated.
Likewise, Bajaj Auto posted a decline of 14% in home two-wheeler gross sales to over 1.76 lakh items as towards about 2.05 lakh items within the year-ago month, whereas Honda Bike & Scooter India Pvt. Ltd. stated its home gross sales have been down 5%.
Suzuki Bike India, nevertheless, noticed a soar of 14.6% in month-to-month home sale at 60,855 items throughout November 2019 as in contrast with 53,058 items offered in November 2018. On Sunday, the nation’s largest automotive maker, Maruti Suzuki India, had posted a decline of three% in home passenger automobiles gross sales to over 1.41 lakh items as towards over 1.46 lakh items within the year-ago month. Equally, Honda Vehicles stated its gross sales have been down practically 50% to six,459 items, from 13,006 items in November 2018.
Rajesh Goel, senior vice-president and director – Gross sales and Advertising and marketing, Honda Vehicles India Ltd.,stated, “Our sales numbers are better than our plan for the month. We are in the last leg of our BS-IV run-out and accordingly supplies had to be optimised as we progress towards BS-VI transition model-by-model sequentially.” Nonetheless, for Hyundai Motor India, wholesales have been up by 2% to 44,600 items, whereas Toyota Kirloskar Motor posted a decline of 22% in home gross sales at 8,312 items through the month below evaluate. The corporate’s deputy managing director N. Raja, stated, “We have consciously lowered the volume of vehicles sold to dealers to ensure lean inventory/avoid high market offers, we are adjusting our production to ensure we do not put any excess burden on our dealerships before the shift to BS-VI in April 2020.”
He added that optimistic sentiments out there had continued to November which had mirrored within the spike in buyer orders throughout all fashions. “The boost in customer orders for all models has sustained this month even after the end of festive season. Customers are aware of the model year price rise in January and the significant price hike of diesel vehicles by 15-20% post BS-VI transition. This pre-buying pull of BS-IV vehicles has helped us in pushing retail sales and also enabling successful runout of products before shift to BS-VI,” he stated.