Honda Motorbike and Scooter India (HMSI), the market chief in scooters, is seeing a gentle restoration after a steep fall in gross sales quantity. This is a sign that the section, hit laborious by the Covid-19 pandemic, is popping the nook.
Gross sales within the first 10 months of the monetary yr for the section and HMSI stay in a unfavourable territory. That is owing to the Covid-induced lockdown in March and April in 2020. However there’s a YoY uptick in numbers, albeit by a small margin, indicating that the worst is over for scooter gross sales in India.
HMSI bought 690,350 items within the three months to January (November-January). It is a 2 per cent improve from the 672,850 items it bought in the identical interval final yr, in keeping with the Society of Indian Car Producers (SIAM). Honda’s rivals, too, are seeing an analogous pattern. Nonetheless, the general section gross sales is down 27 per cent YoY within the first 10 months of FY21.
Yadvinder Singh Guleria, director — gross sales and advertising and marketing — HMSI, mentioned that within the months passed by, the decline was resulting from city India being underneath lockdown. Subsequently, a discount within the variety of general circumstances within the nation, together with in city India, acquired prospects again into the showrooms.
“With financial exercise selecting up additional within the metros and smaller cities, scooters are set to make a comeback,” mentioned Guleria. Furthermore, the pattern of colleges and schools beginning to resume operations and college students coming again to campus will even support restoration, he added.
The native arm of the Japanese two-wheeler producer accounts for each second scooter bought in India. By advantage of being the market chief, HMSI was one of many worst impacted two-wheeler corporations. It additionally prompted the corporate to provoke a voluntary retirement scheme at one in all its vegetation in January and restructure its manufacturing operations.
The truth that HMSI’s dependence on scooters may be very excessive didn’t assist — six out of each 10 two-wheelers bought by the corporate is a scooter. That is set to alter with the latest motorbike launches by the corporate. “An extension into the brand new section of bikes has actually helped,” mentioned Guleria, hinting on the CB350. Honda has a ready of greater than a month for the mannequin, he mentioned.