Two-wheeler records a flattish growth in Q2 FY21 after de-growing by 74% in Q1 FY21

 

8.0 10%
o 0%
2
° -10%
= 6.0 =
2 -20%
< -30%
2 4.0 40%
= 2
-50%
2.0 -60%
-70%
0.0 -80%
Qu Q2 Q3 Q4 Qu Q2
FY 20 Fy21
m= Motorcycles mmmmScooters mam Mopeds Total ===y-o-y growth (%)

Source: SIAM, CRISIL Research

e Domestic sales plunged by 74% in Q1 of fiscal 2021 due to lockdown followed by supply constraints.

e However, the situation slightly eased in Q2 of fiscal 2021 and OEMs registered on-year increase in
domestic sales in August and September 2020. A few OEMs recovered faster than others and focused on
building inventory at dealer level for the upcoming festival season.

e — Sales in Q2 of fiscal 2021 was led by 8% growth in motorcycle category on-year due to demand from
rural region, whereas scooters recorded a decline of 16% yoy, since urban centres were largely under
restrictions due to Covid-19.

Key OEMs in domestic two-wheeler market

FY20

  
  
  

Da Royal Enfield,

~~ 4%
~~ Suzuki, 4%

Others, 3%

Hero leads two-wheeler industry with 51% market share, followed by Honda (27%), TVS (14%), Bajaj (12%)
and Suzuki and Royal Enfield (4% each).
Exports

Two-wheeler exports from India grew 7% in fiscal 2020 over a high base of 16% growth in fiscal 2019 due to
strong demand from African markets, primarily Nigeria and Uganda. The efforts of original equipment
manufacturers (OEMs) to diversify into more promising geographies aided exports.

Most of the export markets such as African nations are crude oil-driven and commodity-linked economies. With
crude oil prices hitting multi-decade low in fiscal 2021, demand from these markets remains a key monitorable.

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