February Auto Sales Live: Honda Motorcycle Sales Rise 29%, Hero MotoCorp Reports 1.45% Growth

“While the industry growth is expected to hover near the double digits in Q4 and upcoming Q1 due to the low base of BSVI transition, Honda continues to drive the two-wheeler demand recovery for 2nd straight month of 2021," Yadvinder Singh Guleria, Director – Sales & Marketing, of Honda Motorcycle & Scooter India Pvt. Ltd said in the statement.

Suzuki Motorcycles, the two-wheeler subsidiary of Suzuki Motor Corporation, Japan reported a 1.5% rise in domestic sales to 59,530 units in February. The two-wheeler maker had sold 58,644 units last year. Sequentially the sales rose 4.43% in February.

Overall, the sales rose 5.4% to 71,662 units in February over last year.

Koichiro Hirao, Managing Director, Suzuki Motorcycle India, said as the firm is slowly riding towards pre-covid sales level.

"We will sustain this upward trajectory in future as well. This will help us in further solidifying our position in the industry," he added.

India's largest two-wheeler manufacturer, Hero MotoCorp Ltd. reported a 1.45% year-on-year rise in sales with the two-wheeler maker selling 5,05,467 units in February. The total sales however rose 4% sequentially.

• Motorcycle sales fell 3.25% to 4,63,723 units in February.

• Scooter sales more than doubled to 41,744 units in February.

• Exports rose 16% to 21,034 units in February compared to last year. Sequentially exports rose 16%

Eicher Motor Ltd. saw sales of Royal Enfield motorcycles rose 10% in February, led by an increase in deliveries of models with engine capacity of upto 350cc. Royal Enfield, the maker of India's cult cruiser motorcycles, saw its sales rose to 69,659 units compared with 63,536 units it sold in February last year.

On month-on-month, sales rose 1.12% over January.

Sales of models with engine capacity up to 350 cc rose 12% to 64,362 units.

Sales of models with capacity over 350cc fell 15% to 5297 units.

Exports nearly doubled to 4,545, sequentially it only rose 0.6% over January.

Volvo Eicher Commercial Vehicles, the commercial vehicle arm of Eicher Motors Ltd, saw its sales grew 19% in February to 5457 units, up from 4586 units same time last year, the company said in a statement. However, sequentially, the overall sales declined 3.8% in February.

Domestic sales rose 22.9% to 4947 units from 4022 units last year.

Exports declined by 9.6% to 510 units from 564 units last year.

Tata Motors Ltd. reported a 54% year-on-year increase in total domestic sales aided by strong demand for its passenger car business and revival of commercial vehicle segment.

• Total domestic sales rose to 58,473 units in February, compared to 38,002 units last year.

• Car sales more than doubled to 27,225 units in February, highest in nearly nine years.

• Total domestic commercial vehicle sales rose 22% to 31,248 units from 25,572 units last year.

• Commercial vehicle export rose 27% to 2,718 units.

TVS Motor Company reported a 18% increase in total sales to 297,747 units in February. The Chennai-based two and three-wheeler maker had sold a total of 253,261 units during the same period last year.

The total two-wheeler sales during the month stood at 284,581 units as against 235,891 units last year, up by 21%.

The domestic two-wheeler sales stood at 195,145 units last month, up 15%, as compared to 169,684 units sold during the same period last year, as per the filings made by the company.

• Total exports went up 23% to 101,789 units in February, compared to last year.

• Motorcycles sales rose 16% to 137,259 units in February.

• Scooter sales jumped 56% to 95,525 units in February.

• Three-wheeler sale fell 24.2% to 13,166 units in February.

Mahindra & Mahindra Ltd.’s passenger vehicles business registered a 41% growth in sales in February at 15,391 units, against the 10,938 units sold in the same period, last year driven by utility vehicle sales, according to the company’s exchange filing.

Overall, the auto sales of M&M's automotive division, declined by 11.4% to 28,777 units in February, as commercial vehicles business drags the gains in the passenger vehicle sales.

"Demand continues to remain buoyant for our range of SUVs and pick-ups and we have a robust order pipeline," Veejay Nakra, Chief Executive Officer, Automotive Division, M&M Ltd said in a statement, adding that supply issue of semiconductors is likely to continue for another 3 to 4 months. "Going forward, we will continue to monitor the situation and closely work with our suppliers to minimise this supply risk."

Sequentially, the sales of passenger vehicle segment declined 25% over January.

Overall commercial vehicle segment sales, including electric three wheelers, nearly fell to 11,559 units in February, compared to 19699 units sold in February 2020.

The Farm Equipment segment, on the other hand, saw its sale rose 25% in February to 28,146 units, compared to the 22561 units sold last year.

Domestic tractor sales rose 24% to 27,170 units, exports rose 43% to 976 units.

"Tractor demand continues to be robust with Rabi sowing at an all-time high, supported by healthy reservoir levels and higher liquidity with farmers, on account of timely and robust procurement of Kharif crops," Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra Ltd. said in a statement.

Hyundai Motor India Ltd.'s overall sales rose 26.4% year-on-year in February led by strong demand across its products, to 61,800 units, compared to 48,910 units sold in the same time last year.

• Domestic vehicle sales rose 29% to 51,600 units.

• Exports rose 14.6% to 10,200 units February

"Both domestic and export demand have recorded healthy double digit growth in February 2021, reflecting an all-round improvement in buyer sentiment," Tarun Garg, Director (Sales, Marketing & Service), HMIL said in a statement.

Ashok Leyland Ltd. reported an overall sales growth of 19% year-on-year at 13,703 units in February, according to the company’s exchange filings.

Domestic Medium and heavy commercial vehicle sales rose 5% to 7114 units from 6,745 units last year.

Domestic Light commercial vehicle sales grew 46% to 5662 units in February compared to last year.

Maruti Suzuki India Ltd. posted total sales of 164,469 units in February led by utility vehicles, compact segment, LCVs and Vans. This is a growth of 11.8% over the 147,110 units sold in the same month last year, the country’s largest automaker said in a statement.

• Total domestic sales rose 11.8% at 152,983 units and exports were up 11.9% at 11.486 units.
• Domestic passenger vehicle sales rose 8.3% to 144,761 units in February compared to last year.
• Mini and compact vehicle segment rose 7.3% to 104,476 units compared to last year.
• Utility vehicle sales continue to see increased demand as sales grew 18.9% over the last year to 26,884 units.

Bajaj Auto Ltd reported a 6% increase in total sales in February driven by a strong pickup in exports. The firm sold 3.75 lakh vehicles last month compared to 3.54 lakh units it sold during the same time last year, according to an exchange filing.

• Total domestic sales fell 2% to 1.64 lakh units in February.
• Total exports rose 13% to 2.10 lakh units
• Total two-wheeler sales rose 7% to 3.32 lakh units, as exports jumped 12% to 1.83 lakh units
• Total commercial vehicle sales fell 5% to 42,454 units in February

Domestic sales of two-wheelers is expected to slow down in February as commodity prices surged and pent-up demand waned, according to estimates by four brokerages.

Only Hero MotoCorp Ltd. among the listed automakers tracked by analysts is expected to report a decline in shipments over the year earlier. That compares with a 4-30% year-on-year estimated rise in wholesales for cars to commercial vehicles, data compiled from research reports of Motilal Oswal, Emkay Global, Dolat Capital and Prabhudas Lilladher showed.

Month-on-month, barring Escorts Ltd., Ashok Leyland Ltd. and Hero MotoCorp, all other automakers are estimated to have witnessed a decline in sales.

Inquiries for two-wheelers during the month were lower for both urban and rural regions, according to Deep Shah and Amber Shukla, analysts at Prabhudas Lilladher. “Demand for entry-level declined 10-12% year-on-year, while the premium segment (150cc and above) dropped 15-16%,” they said, adding dealers are holding an inventory of 1-1.5 months.

Demand for passenger vehicles, on the other hand, is expected to remain strong even as production suffered because of supply constraints, analysts said. “Wholesales volume for most OEMs such as M&M, Tata Motors and Toyota are affected due to acute shortage of semiconductors,” Dolat Capital said.