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Hero MotoCorp, Bajaj, TVS Motor Record Double Digit Sales Slump in February

Image for representation. (Photo: REUTERS)

Image for representation. (Photo: REUTERS)

Two-wheeler manufacturers blamed the BS-VI transition and component supply disruption due to coronavirus outbreak for the decline in sales.

Leading two-wheeler manufacturers Hero MotoCorp, Bajaj Auto and TVS Motor Company on Monday reported a double-digit decline in sales in February as compared to the year-ago period, impacted by BS-VI transition and component supply disruption due to coronavirus outbreak in China. On the other hand, Suzuki Motorcycle and Royal Enfield posted a single-digit increase in sales last month. The country's largest two-wheeler maker Hero MotoCorp reported a 19.27 per cent decline in total sales at 4,98,242 units in February. The company had sold 6,17,215 units in the corresponding month of the previous year, Hero MotoCorp said in a statement.

Total motorcycle sales last month stood at 4,79,310 units as against 5,58,884 units in February 2019, down 14.23 per cent. Total scooter sales declined 67.54 per cent to 18,932 units as compared to 58,331 units in the year-ago month, it added. In the domestic market, sales were at 4,80,196 units last month as compared with 6,00,616 units in the same period a year ago, down 20.04 per cent. Hero MotorCorp said its exports last month were at 18,046 units as compared to 16,599 units in February 2019. The two-wheeler major said it has moved ahead to manufacturing only BS-VI vehicles and stopped the production of all BS-IV two-wheelers in February.

The ongoing COVID-19 issue had adversely impacted production at the company's manufacturing facilities last month. "Since then, substantial progress has been made in developing alternate sources for procuring components. Meanwhile, the component makers in China, having restarted production, are also expected to resume normal supplies soon," Hero MotoCorp said. Similarly, TVS Motor Company reported a 15.39 per cent decline in total sales at 2,53,261 units in February on account of BS-IV reduction and impact of parts to supply disruption due to coronavirus outbreak. The company had sold 2,99,353 units in February 2019.

"As planned, the company is on track to reducing dealer level BS-IV stock in the domestic market and is confident of retailing it this month," it said. In addition, the outbreak of coronavirus (COVID-19) impacted the supply of certain components for the production of BS-VI vehicles. All efforts are on to normalise this at the earliest, it added. Total two-wheelers sales were at 2,35,891 units in February 2020 as against 2,85,611 units in the same month last year, down 17.4 per cent.

Domestic two-wheeler sales last month stood at 1,69,684 units as compared to 2,31,582 units in February 2019, a decline of 26.72 per cent. Motorcycle sales were down 3.29 per cent to 1,18,514 units in February 2020 as compared to 1,22,551 units in the year-ago month. Scooter sales also declined by 30.25 per cent to 60,633 units as against 86,935 units in February 2019, TVS Motor Co said. Total three-wheeler sales, however, grew by 26 per cent to 17,370 units last month as compared to 13,742 units in February 2019. Similarly, total exports also grew by 25 per cent to 82,877 units in February 2020 as compared to 66,570 units in the same month last year, the company said.

Bajaj Auto also reported a 10 per cent decline in total sales at 3,54,913 units in February as against 3,93,089 units in the same month last year. Total domestic sales declined by 24 per cent to 1,68,747 units last month as compared to 2,21,706 units in February 2019, Bajaj Auto said in a statement. On the other hand, niche bike maker Royal Enfield reported 1 per cent growth in total sales at 63,536 units in February as compared with 62,630 units in February last year. Domestic sales stood at 61,188 units last month as against 60,066 units in February 2019, up 2 per cent. Exports declined 8 per cent to 2,348 units as against 2,564 units in the same month previous year, it said.

Similarly, Suzuki Motorcycle India Pvt Ltd (SMIPL) posted a 3.5 per cent increase in total sales at 67,961 units last month. It had sold 65,630 units in the year-ago period. The company's domestic sales during February this year stood at 58,644 units as compared to 57,174 units sold in the year-ago month, a growth of 2.57 per cent. "Inching closer to the end of the current fiscal year, we are happy with our sustained growth momentum," SMIPL Managing Director Koichiro Hirao said. In the four-wheeler segment, Toyota Kirloskar Motor (TKM) reported a 9.1 per cent decline in total vehicle sales at 11,356 units in February as against 12,497 units in the same month last year.

In the domestic market, the company posted sales of 10,352 units last month, down 11.9 per cent from 11,760 units in February 2019, TKM said in a statement. "We have smoothly transitioned to BS-VI manufacturing and started delivering BS-VI vehicles to our customers before the stipulated deadline of April 2020. A total of 31,853 BS-VI vehicles have been dispatched to our dealerships till date," TKM Senior Vice President (Sales and Service) Naveen Soni said.

On Sunday, Tata Motors, Mahindra and Mahindra (M&M) and MG Motor India said that they were facing challenges in terms of component supply from coronavirus-hit China. However, major automobile manufacturers Maruti Suzuki, Hyundai and Toyota Kirloskar Motor said they do not see any immediate impact on their production schedules due to disruption in the supply of components from plants located in China. The companies, however, said they continue to monitor the situation closely, especially the operations of their major suppliers, in order to face any adverse situation that may crop up in the future.