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At Largest Market: Two-wheeler sales crash to 10-year-low in FY22

By General Posts

Two-wheeler sales crash to 10-year-low in FY22; motorcycles fall below 9 mn
India is the largest manufacturer of two-wheelers and also the largest market for it. (China being second)

One of the primary reasons for this downfall is the spiraling cost of fuel prices.
by John from https://www.newswwc.com/

New Delhi: Rural distress impacted the Indian two-wheeler segment, one of the largest in the world, in a big way that their sales in 2021-22 fell sharply, for the first time in ten years, to 13,466,000 units, as per the latest data from the Society of Indian Automobile Manufacturers (SIAM). It was in 2011-2012 that the two-wheeler sales were close to this number at 13,409,00.

( India’s Financial Year is calculated as from 01-April-2021 to 31-March-2022 )

Throughout the year, demand for motorcycles and scooters was impacted by rural distress and higher ownership cost amidst soaring fuel prices. Sales of two-wheelers, particularly motorcycles failed to gather momentum even during the festive months, leaving the companies burdened with a pile of unsold stocks. As a result, the overall sales of motorcycles fell below the 9-lakh mark for the first time since 2016-2017, SIAM report said.

One of the primary reasons for this downfall is the spiraling cost of fuel prices. Barring two months, petrol prices escalated in almost all months of FY22, sometimes even thrice a month that severely impacted the demand of entry-level motorcycles which is the primary choice of the budget-conscious low-income consumers.

New motorcycle sales are directly correlated with fuel prices, as 62% of the country’s fuel sales are consumed by the two-wheeler segment.

According to market experts, spike in auto fuel prices has triggered the rate of deferment majorly among the consumers of below 125cc two-wheelers that hold about 80% of the total market. Besides, shortage of semiconductors and high container charges have also deterred the production levels of OEMs.

Besides, frequent price hikes by the OEMs to overcome the spike in input cost coupled with moderation in rural demand hugely deterred the buying sentiments of consumers.

Additionally, electric vehicle demand continues to witness pickup in the states with higher government incentives like Maharashtra, Gujarat, Delhi, Karnataka etc., which are also key markets for conventional two-wheelers.

All the segments except the two wheelers are in green. Passenger vehicle sales grew 13.2% to 30,69,499 units in FY 22 compared to 27,11,457 units in FY21. Sales of passenger cars stood at 14,67,056 units, utility vehicles at 14,89,178 units and vans at 1,13,265 units.

As fuel prices skyrocket and concerns grow over the running cost of petrol and diesel vehicles, the electric vehicles market has quietly started to build up. As fiscal 2021-22 came to a close, the green brigade — still small in numbers — seems to be coming of age, also charged by government subsidies.

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At 70, Honda hits a milestone of 400mn motorcycles

By General Posts

Honda currently produces a wide range of motorcycles, from 50cc commuters to 1,800cc models, at 35 facilities in 21 countries.

Japanese automaker Honda has produced 400 million units of motorcycles globally since it had begun production in 1949 with its maiden Dream D-Type bike.

According to the company, it achieved 100 million-unit milestone in 1997, and 300 million-units in 2014. In 2018, Honda exceeded an annual production of 20 million units for the first time in its history, and enjoyed strong support from customers in the Asia region and worldwide, it said.

Honda currently produces a wide range of motorcycles, from 50cc commuters to 1,800cc models, at 35 facilities in 21 countries.

Honda was founded in 1948, and began mass-production of motorcycles at its first overseas production facility in Belgium in 1963. Since then, Honda has expanded its production globally in accordance with its fundamental principle of producing locally where there is demand.

Honda will continue to construct its development and production structure to meet rising demand, it said.

Takahiro Hachigo, Chief Executive Officer, Honda Motor said, “For 70 years, Honda has provided to customers worldwide motorcycles that make life easier and enjoyable. As a result, we have achieved our 400 million-unit milestone. I am grateful to all of our customers, and everyone involved in development, manufacturing, sales and service of our products. We will continue to do our best to provide attractive products that meet the needs and dreams of our customers worldwide.”

Honda would strive to realize its 2030 vision, to serve people worldwide with the “joy of expanding their life’s potential,” he added.

Honda Rolled Out Its 400 Millionth Motorcycle Since 1949

By General Posts

by Sabrina Giacomini from https://www.rideapart.com

Honda is one of the few companies still active today that started its life as a motorcycle manufacturer. In 1949, newly-founded company rolled out the Dream D-Type, the firm’s first proper motorcycle. Fast-forward seven decades and Honda remains to this day one of the most recognized brand names in the industry. The company reached several important milestones in 2019, including the production of its 400 Millionth motorcycle.

It looks like 2019 has been a good year for Honda. Not only did the company introduce several new bikes that received a lot of attention (Fireblade, CT125, Africa Twin, etc.), 2019 is also the year we celebrated the 50th Anniversary of the birth of the Japanese superbike, a milestone set by the introduction of the Honda CB750 Four in 1969.

To wrap things up on a high note, the company has now announced the production of its 400 Millionth motorcycle. Considering the manufacturer produces the best-selling motorcycle in the world, the Super Cub, it kind of makes sense. In 2017, Honda celebrated the production of 100 Million Super Cubs which means the model alone accounts for over a quarter of the motorcycles produced by Honda since its inception.

For reference, it took almost 20 years for the company to reach its first 10M units produced. Motorcycles are now being produced at a rate of roughly 20M a year. How the times and the industry have changed! The previous turning point was reached in 2014 when the counter reached 300 Million. It took only five years to add another 100M to its records.

India and Indonesia account for over 50 percent of that production (no big surprise there). What about the U.S.? It doesn’t even have its own share of the chart. It’s included in the “Other” slice of the pie, along with Europe, which accounts for 620 000 units between April 2018 and March 2019.

Happy anniversary, Honda, and here’s to another 400 Million bikes!

Yamaha Expects India to Become its Largest Production Base in 5 yrs

By General Posts

Markets in Indonesia, Vietnam saturating; India priority No. 1, says top executive.

Japanese auto major Yamaha Motor Company (YMC) expects India to overtake Indonesia to emerge as its largest base in terms of production output in the next five years.

“India sells more than 20 million two-wheelers annually and the numbers are growing. Our company’s market share is in single digits. We want to improve this. There is a lot of opportunity,” says Yamaha India Chairman Shitara.

Two-wheeler sales in India increased 6.95% to 19,740,727 units till February this fiscal. In the same period, India Yamaha Motor’s sales remained largely flat at around 732,006 units. The company additionally exported 226,010 units.

Yamaha Motor India’s group chairman Motofumi Shitara was speaking on the sidelines of the launch of MT-15 priced at ₹1.36 lakh (ex-showroom, Delhi).

“India is priority number one for us worldwide. We aim to have production volume of 2.5 million units in India in the next five years,” he said.

Going ahead, Shitara said the company would steer clear of the mass segment and focus on launching premium motorcycles in the domestic market. The company has also commenced a study on introducing electric two-wheelers in India.

Shitara is currently defining the mid-term roadmap for the company till 2025 to lay the foundation on how the brand Yamaha takes shape the country. Apart from growing volumes, Shitara said a focus area for him is to project a strong image for the Yamaha brand in the local market.

Yamaha MT-15 was launched on Friday – a 155cc bike with liquid-cooled four-stroke engine mated to a six-speed transmission. MT-15 is priced at Rs 1.36 lakh ex-showroom. It has ABS and fuel injected variable valve actuation (VBA).

On the idea of electric motorcycles, the Yamaha Chairman says – “Three points are important, one is performance. Second, is price control. And third, infrastructure for battery charging. These three issues we should answer (for electric vehicles to take off)”, Shitara said.

Harley-Davidson looks to consolidate position in big bike segment in India

By General Posts

One of the India Showrooms of Harley-Davidson

Last year, Harley-Davidson had reported sale of over 3,000 units in the country.

New Delhi: American cult bike manufacturer Harley-Davidson Thursday said it aims to further consolidate its position in the over 1,600-cc segment in India, which it currently dominates with over 90 per cent market share.

Economic Times Article: https://auto.economictimes.indiatimes.com/news/two-wheelers/motorcycles/harley-looks-to-consolidate-position-in-big-bike-segment-in-india/68414005

The company launched its 1200-cc model Forty-Eight Special in India priced at Rs 10.98 lakh (ex-showroom Delhi) here. It currently has four models in its big bike (over 1,600-cc) portfolio in the country.

“We definitely will be consolidating in the big bike segment,” Harley-Davidson India Managing Director Sajeev Rajasekharan told .

Sales in the 1,600-cc plus bike segment in India currently stands at over 600 units annually.

Rajasekharan said last few years have witnessed consistent growth in terms of big bikes; and the company has been able to maintain its leadership position.

“We expect the market to grow from this year as the trends have been positive. More models are there and road infrastructure has been improving. There is more awareness and all these factors will trigger further growth in the market,” he added.

Last year, Harley-Davidson had reported sale of over 3,000 units in the country. The company’s bikes are priced between Rs 5.33 lakh (Street 750) and Rs 50.53 lakh (CVO Limited).

When asked about the time-frame for introducing small capacity bikes in India, Rajasekharan said there is “not much to share on that”.

Last year, Harley-Davidson had announced plans to develop a 200-500 cc motorcycle through a strategic alliance in Asia which will be used to primarily fuel its growth in India.

On introducing its Livewire electric bike, he said, “We would launch it in the US and Europe; and when infrastructure is ready, Harley would look at spreading out to other markets as well.”

He said that there is a lot of emphasis on electric mobility in India and the company is very happy with the positive changes that are happening to get the environment more conducive for launch of such vehicles.

The company on Thursday also introduced an updated version of its touring bike Street Glide Special priced at Rs 30.53 lakh .

Commenting on this new edition, Rajasekharan said the bike now comes with an upgraded 1,868-cc engine and other accessories.

The model is one of the three touring models that Harley-Davidson sells in country right now. Other two have already been updated and launched.

Commenting on company completing ten years in India, Rajasekharan said this “is just the beginning as we remain the cruiser of choice for many riders. With the all-new Forty-Eight Special, the company takes its motorcycle line up in the country to 17 models”.

Over the past ten years one of every two big bikes sold in the country has been a Harley, he added.

Elaborating on company’s plans for the current year, Rajasekharan said Harley would add two more dealerships during the course of the year taking the total count to 33 from current 31 outlets.

“We also plan to add three lifestyle stores taking the count to 10. In the tenth year of operations in India we will have 43 touch points in all,” he added.

No silver bullet in sight for Enfield hit by sliding volume

By General Posts

The Eicher Motors stock fell 30 per cent in the past year.

The Bullet, it appears, is just not firing on all cylinders at the moment.

Royal Enfield (RE) sales are rather soft, and state-wise volume statistics furnished by industry body SIAM show that the bike that defines panache for motorcycle enthusiasts in India is riding through a rather rough patch. Eight states that make up three of every five RE bikes sold locally have reported deceleration.

Maharashtra and Karnataka together account for 13 per cent of RE volumes, and these two states have seen a drop in 6-7 quarters of the past nine.

Kerala, the largest market of RE, has witnessed volume drops of 13 per cent and 23 per cent in the September and December quarters, respectively. The September decline is attributed to floods. But declines in the December quarter have put the lens on underlying demand.

Industry volume growth of twowheelers in south India was 9.5 per cent in the first nine months, up from 5.6 per cent in the previous year. However, RE’s sales volume growth in the Southern states has been underwhelming.

The RE management has given production guidance of 8.7-8.8 lakh units for the current fiscal year. However, it is unlikely to be met. Average monthly run-rate of RE in the first 11months of FY19 stood at 69,569 units. To achieve the stated guidance, the company needs to produce 1.04 lakh vehicles in March. This appears to be quite a daunting task given the weak demand cycle.

The Street is factoring in volume growth of 10 per cent for FY20, which could be trimmed due to about 3 per cent growth in FY19. The Eicher Motors stock fell 30 per cent in the past year following constant negative surprises on the volume front. The stock is trading at 21 times FY20 earnings, compared with the long-term average of 30 times.