Honda Overtakes Hero to become the Biggest Manufacturer in India; Two-wheeler Sales Report For September 2024

Quick Highlights:

• Honda overtakes Hero in sales in September 2024

• Low two-wheeler sales despite Ganesh Festival and Onam

• Sales is expected to go up in Diwali due to massive discounts 

Honda Motorcycle and Scooter India (HMSI) surpassed Hero MotoCorp in sales for September 2024, claiming the top position. Honda sold 3,33,927 units during the month, accounting for 27.73% of the market share. In contrast, Hero MotoCorp, who is traditionally the market leader, slipped to the second position, by selling 2,71,390 units, holding 22.54% of the share.

What Really Happened?

The two-wheeler segment in September 2024, saw an overall year-on-year (YoY) decline of 8.51% from the year 2023. Several factors contributed to this drop, including weak consumer demand, delayed purchases, and disruptions due to adverse weather conditions. Even with the festive season starting with Ganesh Chaturthi and Onam, retail demand remained low, particularly in rural regions where heavy rains impacted footfall at dealerships.

Honda's rise can be credited to its vast product lineup, particularly its scooter models like the Activa, which continues to dominate urban markets. Honda has increased their focus in marketing and giving out attractive financing options, which also increased its sales figures, allowing it to outperform Hero.

On the other hand, Hero MotoCorp’s performance suffered primarily due to the low rural demand, a key market segment for the company. Factors such as delayed purchases during the ‘Shraddh’ period and low inquiry rates further reduced Hero’s sales, contributing to its slip in the second position and decline in market share.

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How does the future look?

With major festivals like Navratri and Diwali in October, the two-wheeler market is expected to see a surge in demand. Rural sector demand, in particular, is likely to recover due to good harvest season after a favourable monsoon. . Honda is poised to maintain its lead with ongoing festive offers and new model introductions, while Hero will likely focus on rural areas and promotional discounts to regain momentum.

Other manufacturers are also expected to perform well in the upcoming festive season. For instance, TVS Motor Company registered sales of 2,21,257 units in September, securing an 18.37% market share, up from 17.43% YoY. Its strong product range in both motorcycles and scooters, along with its increase in demand in semi-urban markets, continues to increase the company’s growth.

Suzuki Motorcycle India also posted growth, with 74,287 units sold in September. The Access 125 and the Gixxer series are anticipated to attract more buyers during this festive season.