Indian Two Wheeler industry did great in October
October was a great month for the Indian auto industry. Not only did the automobile section do great, the two-wheeler market did amazingly well too. All the major market players like Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (BAL) and TVS Motors Ltd (TVS) reported their highest monthly sales in October. Hero Honda sold as many as three lakh vehicles in October.
Bajaj also reported their highest sales in a month with 2.05 lakh motorcycles sold. TVS on their part reported a growth of around 17% with 1.38 lakh units sold in the market. Market experts believe that the rise in the sales was due to the improving economy and the festival season. Indians tend to do their expensive shopping during the time period closer to Diwali festival.
However, this growth is just not a one-off occasion. The industry has recorded double-digit hike in sales during the first six-months of the current fiscal. The total sales during the period rose 15% to 33 lakh units riding on motorcycle sales, which increased 20% to 27 lakh units. There is also consolidation going on in the market with most of the sales going to the top two players namely Hero Honda and Bajaj.
Despite the economy booming, two wheelers still are considered to be the mass vehicle of transportation. With Tata planning to launch their Rs. 1 Lakh Car in the next couple of years, this might change.