Domestic gross sales of two-wheeler gross sales confirmed some enchancment in April with three of the 5 producers posting progress on a yearly foundation on the again of the marriage season. However, analysts doubt whether or not this slight revival is sustainable as points like excessive price of possession, which has impacted rural demand and gross sales of entry-level fashions, proceed to plague the sector.
Hero MotoCorp, TVS Motor Company and Royal Enfield posted progress in gross sales throughout April whereas Bajaj Auto and Suzuki Motorcycle India noticed their gross sales decline.
“With the economy gradually opening up and continued government policy support, April volumes indicate the continuously improving consumer sentiments,” Hero MotoCorp mentioned in an announcement. The firm’s despatches to sellers improved 16.3% year-on-year to 398,490 items in April.
TVS mentioned a scarcity of semiconductors has impacted the manufacturing and sale of its premium two-wheelers. While the corporate is working with different sources to enhance provides, it mentioned that its volumes will revive as soon as the semiconductor scenario will get higher. The firm’s two-wheeler volumes elevated 37.4% y-o-y to 180,533 items in April.
Despite challenges on the supply-side, Royal Enfield’s two-wheeler volumes within the home market jumped 10.4% y-o-y to 53,852 items in April.
Bajaj Auto’s despatches slipped 26.3% y-o-y to 93,233 items, whereas Suzuki reported a decline of 14.9% y-o-y to 54,327 items.
“The decline in April is entirely supply-chain led. We have had surprises in our supply-chain on the semiconductor side and we have embarked on a slew of countermeasures, which have started to make a difference from April,” Rakesh Sharma, govt director, Bajaj Auto, informed CNBC-TV18 information channel, including that May onwards, the corporate will be capable of improve provides of semiconductor-based parts at a a lot greater charge and possibly resolve them utterly within the second quarter.
Source: www.financialexpress.com”