Wedding season, rural demand, adequate chip supply drove domestic two wheeler sales

2 Mar 2023 , 02:53 AM

Two of India’s top three listed bike makers exceeded domestic sales forecasts in February as chip supply shortages eased, while passenger vehicle sales increased on the back of utility vehicle demand.

Domestic two-wheeler sales increased by double digits year-on-year, indicating the financial health of India’s rural economy and demand in the country’s largest consumption segment, loosely defined as lower-middle-income households.

Analysts predicted an increase in domestic two-wheeler sales, driven by wedding season demand and a reduction in chip shortages.

Domestic sales increased by about 28% at TVS Motor Co Ltd, 24.7% at Bajaj Auto Ltd, and more than 15% at Hero MotoCorp Ltd.

Bajaj fell short of analysts’ expectations for a 45% and 43% increase in domestic sales, respectively, while Hero and TVS exceeded the brokerages’ forecasts.

However, the total monthly volumes of both Bajaj and TVS Motors were dragged down by weak exports.

Maruti Suzuki India Ltd, the top player in the passenger vehicle (PV) segment, witnessed a 10.1% increase in sales, with Tata Motors registering a 7.4% growth in their sales.

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