Two-wheeler majors Hero MotoCorp, Bajaj Auto and TVS have all posted record sales in September. This signals a possible shift in the buying pattern of certain small car customers towards more fuel-efficient vehicles as interest rates and fuel prices rise.
Market Leader Hero MotoCorp, the erstwhile Hero Honda, has posted the highest-ever two-wheeler sales for the month at 5.49 lakh units on a growth of 27 per cent. Volumes for the first six months of the fiscal have crossed three million units.
“Sales have been regularly in excess of half a million two-wheelers per month since the formation of our new company. We expect this momentum to continue into the festive season, and our plans are in place to meet the market demand,” Hero MotoCorp's Senior Vice-President for Marketing & Sales, Mr Anil Dua said.
The New Delhi-based company closed the second quarter (July-September) of 2011-12 with sales of 15.44 lakh units, a growth of 20 per cent over the corresponding quarter last year.
Rival Bajaj Auto's motorcycle sales, which grew 18 per cent, also broke its own record. Its three-wheeler sales (46,478 units) and exports (1.41 lakh units) were also the highest ever.
TVS Motor, the third largest player in the segment, crossed the 2 lakh unit milestone on a domestic sales growth of 16 per cent. TVS' exports were up 27 per cent (25,973 units), while three wheeler sales rose 14 per cent (3,679 units).
“People who want to buy small cars and can't hold back their purchase are going for two-wheelers instead because of the poor market sentiments.
Also, many people who already have cars are buying scooters and bikes for their personal daily trips, so that they can save on higher fuel expenses. They tend to keep the car only for family trips,” Mr Abdul Majeed, auto practice leader at PwC said.