Two-wheeler manufacturers increased dispatches to dealerships by 9% year-on-year in September, surpassing 2 million units, as they anticipated a demand boost following the GST rate cut to 18%.
GST Cuts and Navratri Drive Demand
Market watchers said demand was initially slow due to the Shraddha period, but it surged in the final week as GST cuts took effect and the auspicious Navratri season began.
Hero MotoCorp, the country’s largest two-wheeler maker, grew wholesale volumes by 5% to 647,582 units, while vehicle registrations jumped 19% to 323,230 units.
Hero stated, “The festive spirit and GST benefits sharply increased bookings and enquiries. Showroom and dealership footfalls more than doubled compared to last year, with high traction in the commuter segment.”
- Honda Motorcycle & Scooter India (HMSI) posted 3% growth to 505,000 units, the lowest among major makers.
- TVS Motor Company increased volumes by 12% to 413,000 units, supported by strong scooter demand.
- Bajaj Auto recorded 5% growth to 273,000 units.
Eicher Motors-controlled Royal Enfield saw a 43% surge to 113,000 units in September. CEO B Govindarajan said, “It has been an incredible start to the festive season. We registered our best-ever monthly sales and crossed 100,000+ retail volumes for the month.”
HSBC noted that some demand remained held back by limited discounts, affecting both urban and rural sales. Early festivals combined with an extended monsoon also negatively impacted rural demand.
The report added, “Normally, OEMs offer discounts of ₹5,000–10,000 per vehicle during Navratri, but they were lower this year and nearly absent on key models. Retail sales should improve materially during Diwali, and higher discounts will likely boost volumes further.”
Also Read: Navratri Sales Soar As GST Cuts Boost Consumer Spending
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