The ongoing festival season has failed to bring joy to the motorcycle industry, with growth in sales volumes not meeting expectations, Rakesh Sharma, Executive Director, Bajaj Auto, said. The overall increase in the sale of motorcycles during the full festival season is expected to be limited to 5%, according to Sharma.
The exact reasons for such muted growth is not very clear, Sharma said, but noted that disruptions caused by delayed monsoons, assembly elections in some states, as well as unrest in the north east, which is a good two-wheeler market, could be probable reasons.
“Pitrupaksh was a decline; we thought (sales increase during) Dussehra would be at 6-8%, but it is not that much. It is 1-2%, almost similar to last year's,” Sharma told reporters on Wednesday in a post-earnings call.
“There are still 15 days and I have noticed that a lot of times demand becomes very compressed and surprises us even over a couple of weeks. But I don't think it will be in the high digits of 8% or so. We will be lucky if we see 3-5% growth for the industry in this festive season.”
Motorcycle off-take in the southern and eastern markets has declined. However, northern markets comprising states such as Uttar Pradesh recorded a robust growth in sales during Dussehra, Sharma said.
For most states in India, the festival season generally starts by the end of August or the beginning of September with Ganesh Chaturthi and Onam, and lasts till Bhai Dooj after Diwali in November.
This period is of much significance to automakers owing to high consumer spending due to cultural significance. Volumes generated in this period account for a significant part of automakers’ annual sales.
Rural areas, in particular, see a notable increase in two-wheeler sales during this time, as farmers often have more disposable income after the harvest season. However, actual sales figures can vary year to year, influenced by factors such as economic conditions, fuel prices, and consumer sentiment.