The implementation of Goods and Service Tax (GST) from July 1, 2017, in India was received with mixed opinions by the two-wheeler manufacturers. With a slight decrease in sales in July 2017, the industry rose again in August 2017.
Hero MotoCorp, Royal Enfield, TVS Motors, Suzuki Motorcycles reported positive sales growth, while Bajaj Auto dipped by 2 percent compared to August 2016.
India's largest two-wheeler manufacturer posted its highest ever monthly sales in August 2017 with 10.11 percent. The company sold 6,78,797 units in August 2017 compared to 6,16,424 units in August 2016.
Hero MotoCorp attributed to the increase sales in August to the early arrival of the festival season in 2017. While its domestic sales stood at 6,61,490 units, global business contributed 17,307 units to the overall sales.
Royal Enfield continued its growth posting 22 percent for August 2017. The iconic bike maker sold 67,977 units in August 2017 compared to 55,721 units in August 2016. The exports of Royal Enfields too witnessed an increase of 12.03 percent with sales of 1,105 units as compared to 986 units in August 2016.
Motorcycles with an engine capacity up to 350cc contributed 63,637 units, while 4,340 units were of capacity up to 500cc. During the period from January 2017 to August 2017, Royal Enfield sold 316,432 units with exports at 7,521 units.
Bajaj posted a decline in sales in August 2017 by 2 percent with sales of 171,664 units in August 2017 and for August 2016, it sold 174,719 units. However, it exports grew by 7 percent shipping 112,197 units in August 2017, and the same month last year, it exported 105,192 units.
Even during the period from April 2017 to August 2017, Bajaj Auto's sales dipped by 15 percent with sales of 763,141 units compared to 897,923 units in August 2016.
TVS Motors posted positive growth in August 2017 sales with 16 percent increase compared to the same period last year. It sold 317,563 units in August 2017 and 274,303 units in August 2016.
In the local market, TVS Motors sold 270,544 units in last month from 238,984 units in August 2016, posting a growth of 13.2 percent. The biggest growth came from TVS Motors' scooter sales registering 49.3 percent with 114,354 units sold in August 2017 compared to 76,572 units in August 2016.
However, TVS Motors' motorcycles sales in August 2017 fell. It sold 111,927 units in August 2017 as compared to 114,195 units in August 2016.
Suzuki Motorcycles recorded its best-ever monthly sales by registering a massive growth.The company sold 56,745 units in August which is a year-on-year growth of a solid 54.3 percent. The Japanese two-wheeler manufacturer is aiming to sell 500,000 units in FY2017-18.
Sajeev Rajasekhran, EVP, Sales and Marketing, SMIPL said that its sales were boosted by the introduction of new Gixxer ABS variants and the Gixxer Special Edition in August 2017.
While most of the two-wheeler manufacturer posted positive sales in August 2017, Bajaj Auto seems to have lost a little bit of steam. With the partnership with Triumph, Bajaj Auto is consolidating its portfolio and could enter the segment which is led by Royal Enfield.