2019 February Sales Report: Suzuki, TVS Show Impressive Growth; Royal Enfield, Hero Sales Decline
Although Royal Enfield’s domestic sales were limited, it’s international sales grew by 49%
- Decline in sales due to new insurance requirement, rising raw material costs and consecutive price hikes, says RE.
- Hero MotoCorp sold 6.7 lakh units as opposed to 6.29 lakh units in the same month last year.
- Riding on the success of the Access 125, Suzuki clocked a 27 per cent growth.
We’ve got our hands on the sales figures for the month of February and unsurprisingly, it shows that Royal Enfield’s sales have slid for the fourth consecutive month. Here’s a quick rundown of how major two-wheeler manufacturer’s performed last month.
Suzuki sold 65,630 units in the month of February as opposed to 51,831 during the same time last year. With this bump in sales figures, Suzuki has recorded an impressive growth of 27 per cent. Total sales stood at 6,80,470 units as compared to 5,22,929 in the same time period.
One of the driving factors behind this growth is the Access 125. The Suzuki Access 125 overtook the TVS Jupiter and claimed the title of the second best-selling scooter in the country. As of January 2019, Suzuki has sold 54,524 units of the 125cc scooter. Another product contributing in the sales success is the Burgman Street 125, which despite its premium pricing has found a following. Devashish Handa, VP, sales, marketing and after-sales, Suzuki India, said, “Our sustained and robust growth in the face of depressed industry sentiment clearly demonstrates the confidence the Indian two-wheeler users have reposed in brand Suzuki.”
TVS too saw positive growth in February 2019. The Hosur-based bikemaker registered a growth of 3 per cent with sales increasing from 2,90,673 units in February 2018 to 2,99,353 units in the month of February 2019. TVS’ motorcycle arm saw the most significant growth. With sales increasing from 1,13,296 units in February 2018 to 1,22,551 units in February 2019, the motorcycle division saw a growth of 8 per cent. On the other hand, scooter sales stood at 86,935 units in February 2019 as against 93,573 units in February 2018. The Hosur based two-wheeler giant will be trying hard to push its scooter sales further to increase its sales numbers in the coming months.
The Pune-based manufacturer sold 3,27,985 lakh motorcycles in February 2019 compared to 2,97,514 lakh in the same month last year (growth of 10 per cent over last year). Out of the 3.27 lakh units, around 1,86,523 units were sold domestically (up by 6 per cent) and 1,41,462 were sold internationally (up by 16 per cent). Not only did Bajaj's motorcycle segment witness positive growth, but even its commercial sector performed incredibly well. The sales figures for the CV sector stood at 65,104 as opposed to 60,369 units that were sold in February 2018. Also, with the new Dominar 400 and the Avenger 160 set to join their way, we expect the numbers to rise further.
2018 had been a busy year for Royal Enfield. The Indian bikemaker not only introduced various variants of its popular models, but it also expanded its product lineup by launching two brand new motorcycles, the Interceptor and the Continental GT. But, even the strong response for the 650 twins couldn't help Royal Enfield gain a positive growth and it saw a 16 per cent dip in sales in February 2019.
Royal Enfield sold 60,066 units in February 2019 as opposed to 71,354 units sold in February last year. While domestic sales have witnessed a slump, Royal Enfield reported a 49 per cent growth in international sales. The bikemaker exported 2,564 units in February 2019 compared to 1,723 units in the same month last year. In YTD (April-February) terms, the company sold 7,44,405 units, compared to 7,65,267 units sold in the same period last year. This translates to a growth rate of 3 per cent.
The main reasons cited behind this drop are new insurance requirements, rising raw material costs and consecutive price hikes due to regulatory safety requirements. Also, there was a 50-day strike at Royal Enfield’s Oragadam plant and the estimated impact on production was approximately 3,200 units.
Royal Enfield was not the only major Indian bikemaker that saw a dip in sales this year. India's biggest two-wheeler manufacturer, Hero MotoCorp, has been affected too. The company sold 6,17,215 units in February 2019 compared to 6,29,527 units that it had sold in the same month a year ago. However, Hero is planning to increase its overall sales figures in the coming months by adding two new products to its portfolio -- the Maestro Edge 125 and the X-Pulse 200.