India 2022. Hero Is Topping The Race In May Motorcycles Market Rushing (+259%)

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Hero Electric
Hero Electric

Indian Motorcycles Market finally recovered compared with the previous year. s in troubles. In May 1.28 million (+259.9%), with year to date May sales at 5.95 million (+3.7%). Data confirms that the electric segment is finally growing up with sales after five months of the 2022 at 212.765, up 488.3%.

Data reported for India regards wholesales and not – as for all the other countries – registrations. The perimeter of data covered includes motorcycles, moped, scooter, and ATV, both on ICE and electric engines. In addition, data includes the commercial three wheeler, very popular in the country.

Indian Motorcycles Industry Trend and Perspectives

Following years of troubling, with the industry hit in sequence by price increases correlated with highest safety and emission standards and then by covid shutdowns, late vaccination process and 2021 persistent covid spread in the country, the industry was expected to recover starting from the 2022.

However, the inflation winds across the World and the supply chain disruption were representing serious risks against the recovery, considering that India is the most sensitive country to price effects and the local production represents 99.9% of domestic sales.

The industry acceleration in place all over the World due to the electrification in process, in India is slow and could partially offset the negative impact of the above mentioned threats.

Moreover, 2022 expectations were positive, considering the market in 2021 landed over 25% below the 2018 record.

Unfortunately the year started disappointing good expectations and the first quarter was already a sentence. Losing in double-digit in each month, the 2-wheeler market ended the quarter with only 4.38 million sales, down a deep 21.2%, exceeding all the negative expectations.

In April sales have been 1.19 million, up 19.3% compared to the weak correspondent month last year, and in May 1.28 million (+259.9%), with year to date May sales at 5.95 million (+3.7%), finally recovering from the previous year.

Data confirms that the electric segment is finally growing up with sales after five months of the 2022 at 212.765, up 488.3%.

Looking at the top manufacturer performance, Hero is on top with 1.97 million sales (-1.4%) ahead of Honda with 1.55 million (+3.2%) and TVS Motor with 909.494 (+15.8%). 

Bajaj Auto ranks 4th with 513.419 sales (-20.9%) and Suzuki in 5th with 284.805 (+12.5%).

 

Royal enfield engine

Motorcycles Market Trend in the 2021

Sharing with Clients the forecast for the Indian 2 and 3 Wheeler industry in 2021, we were less optimistic than all of them and anyhow we exceeded the real market volume. Indeed, following the huge lost reported in the 2020, last year the Indian market was below any expectations with a very shy recovery.

The main agent against the market recovery was again the pandemic effects in the country, with a vaccination process started very slow and both production and distribution penalized by local shutdowns.

The two and three wheeler industry is totally mirroring the economic environment. Sales started to recover during the Q1 (calendar year) before to sharply decline in the Q2 at a monthly rate around 1 million units, with the first half sales (Jan-Jun 2021) at 6.7 million, up 32.6% vs the 2020, while down a deep 37.4% vs the pre-covid figures in the 2019.

However the period below expectations was the second half, when resurging Covid19 pushed down the economy and the consumers demand, with sales below the correspondent month in the previous year in all months.

At the end, the industry closed with a really low increase over the 2020 with total sales (including 2/3 wheelers, but ICE and EVs) just over the 15 million, up a mere 3.4%.

Looking at the brands performance  the market leader, Hero sold in India 4.85 million (-9.3%) reporting a lost of 3 million units since the all-time record established in the 2018.

In second place Honda with 3.7 million (+10.4%) down 2 million from the 2018 record.

Third was TVS Motor with 2.15 million sales (+8.0%) ahead of Bajaj Auto with 1.86 million (+4.2%), Suzuki with 629.000 (+25%), Royal Enfield with 542.000 (+11.3%) and Yamaha with 511.000 (+0.9%).