Indiastockguru Team
June witnessed muted customer sentiment for the two-wheeler sector in India. Except Hero MotoCorp, largest two-wheeler manufacturer by volume in the world, all other major players reported lower YoY volume growth in June 2024. Hero is making strong strides in the 125 cc motorcycle segment with the launch of its Xtreme 125R bike competing with TVS Raider 125 and Pulsar 125. As monsoon picks up in July, rural demand is expected to support Hero MotoCorp volumes. The company is the market leader in the entry level motorcycle segment in India. Motorcycles constituted 96% of its total two-wheeler volumes (503,448) and scooters, the remaining 4% in June 2024.
Eicher Motors reported a 5% YoY wholesale volume fall in June 2024. Segment with engine capacity upto 350cc witnessed volume fall of 10% YoY constituting 84% of total volumes (73,141 units) in June 2024. Investors are keenly watching above 350cc segment (16% of total volumes) which had a slew of new launches recently such as Himalayan 440 cc, Shotgun 650, Super Meteor 650 driving volumes in the past few months. Eicher Motors is expected to launch another 450cc motorcycle in July. The street is also excited about Bajaj Auto’s upcoming CNG bike to be launched in July 2024. Bajaj Auto wholesale volumes stood at 3,03,646 units in June 2024. TVS Motor Company is also planning to launch its new bike, TVS Fiero 125 in July-September 2024 period. Motorcycles constituted 60% of total two-wheeler volumes (322,168 units) and scooter segment, the remaining 40% in June 2024.
Bajaj Auto and TVS Motor Company reported 6% and 3% YoY growth in wholesale volumes in June 2024. Two-wheeler sector witnessed muted growth on account of severe heat conditions in May-June period in India. While the month of July is expected to witness strong pick up in monsoon activity improving rural demand, the start of the festive season from August augurs well for the two-wheeler sector.
