Motorcycle Sales April-June 2022 increases 38 percent YoY: Report

Motorcycle Sales between April and June 2022 (Q1 FY 2023) have increased 38 percent YoY. Royal Enfield accounts for 93 percent of 250-350cc segment sales; HMSI for 51 percent of the 110-125cc segment.

Motorcycles are the largest category within the two-wheeler segment, making up 24,05,228 units, or 64% of all two-wheelers between April and June 2022. (Q1 FY2023). On the other hand, exactly half that number - 12,07,903 units or 32 percent, were scooters. The remaining 1,11,402 units were mopeds.

The two-wheeler market grew by 54% YoY in Q1 FY2023, with scooters posting 100% growth on a smaller base than motorcycles, which witnessed a YoY increase of 38%. The global two-wheeler market was down 11%, at 1,34,66,412 units in FY2022 (FY 2021: 1,51,20,783), just three months before FY2023 began. Motorcycle sales were down 10.34 percent to 89,84,186 units (FY 2021: 1,00,21,231) while scooter sales were similarly down 10.55 percent to 40,09,076 units (FY 2021: 44,82,305).

75-110cc segment – 12,76,764 units

India is most certainly a huge market for bikes belonging to this category. The majority of purchases in Q1 were made in the inexpensive bike category, primarily 100 to 110cc bikes, which are masters at maximizing the use of each and every expensive ounce of petrol. They were sold in excess of 12 lakh (12,76,764 units), representing a significant 35 percent YoY rise and 53 percent of all motorbike sales in Q1.

Hero MotoCorp is the main winner here and has 1,049,687 units, which accounts for 82% of this market share for entry-level bikes. Bajaj Auto is second with 93,552 units (7.3%), TVS Motor Co. is third with 85,094 units (6.6%), and Honda Motorcycle and Scooter India (HMSI) is fourth with 48,431 units (3.79 percent share).

110-125cc segment – 6,91,022 units

Bajaj and Yamaha India are the two leading companies in this market, but their sales in the first quarter of FY2022 were down 6 percent to 76,666 units (Q1 FY 2022: 80,031). However, Bajaj's sales in this market were down 52 percent to 25,785 units (Q1 FY 2022: 53,639), while Yamaha sold 50,881 units of the FZ and SZ, clocking a smart 92 percent YoY growth.

150-200cc segment – 1,80,245 units

Bajaj Auto, Hero MotoCorp, HMSI, India Yamaha, Suzuki, and TVS Motor are the six companies that compete in this market. Q1 FY2022 sales of 1,69,947 were increased by merely 6% to 1,80,245 units. Three players saw YoY revenue growth, while the other three experienced decline in revenue growth.

Although TVS sold the most here (51,123 Apaches), it experienced a YoY decline of 36%. (Q1 FY 2022: 79,576). Suzuki also decreased with 2,139 units, and HMSI decreased by 31% with 24,708 units (-36 percent).

Yamaha was the best-performing company, selling 47,995 units (101 percent growth); Bajaj Auto followed much behind with 30,935 units (64 percent growth) sold in the first quarter. Even with a low foundation of 8,455 units the year before, Hero MotoCorp sold 23,345 units, an increase of 176 percent.

200-250cc segment – 9,295 units

With only 9,295 units sold, the 200-250cc market saw a 33 percent decrease in sales from the 13,794 units sold the year before. The price of motorcycles is one of the factors contributing to this segment's relative underperformance. In most ways, the 200s are almost as good as the 250s. Additionally, the pricing of the 250s tempts users to consider choices with greater capacities. Their stated objective also does not include fuel efficiency.

250-350cc segment – 1,52,055 units

Buyers are gravitating toward the 250-350cc category because to the rapidly narrowing price differential between these bikes and feature-rich premium 150-200cc commuter bikes. Many first-time bike buyers who are unable to afford a large, powerful superbike are interested in a smaller, stylish, performance-focused vehicle with excellent value.

Additionally, manufacturers all over the world are developing lighter models with smoother ride characteristics and ergonomically pleasant seat heights, making them useful for both commuting in cities and for winding highway excursions.

With 1,41,844 units sold, up 44%, and controlling an overwhelming 93 percent of this market, Royal Enfield and its Bullets have fully gained control of this segment. HMSI, which sold 8,744 units of the CB300, was the next biggest seller, followed by TVS Motor, which sold just 1,052 units of the RR 310, and Kawasaki, which sold 367 units of the Ninja 300.

350-500cc segment – 13,357 units

This category mirrors the demand increase of the 300cc market with a total of 13,357 units sold, up 108 percent YoY (Q1 FY 2022: 6,416). With 10,857 units sold, Royal Enfield's Bullet 500 held an 81 percent market share. Bajaj and its Dominar-Husqvarna-KTM combination sold 2,496 units, up 2.6 percent.

500-800cc segment – 5,310 units

This category's YoY growth was a wise 114 percent, with 5,310 bikes sold. The most popular models in this market are the Royal Enfield 650cc twins, with 180 units each of the Versys and Ninja 650 from Kawasaki India coming in second and third, respectively. Triumph Motorcycles India follows it with 124 units of the Street Triple.

Growth outlook is cautiously optimistic

Although high gas prices, inflationary pressures, and cost of ownership remain obstacles in the commuter bike market, persistent demand from rural India will support market growth in the months to come.

For the midsized or luxury bike market, where sales are accelerating quickly, there are no such inflationary pressures. For instance, this year is expected to see record sales for BMW Motorrad India. It has sold a total of 3,114 units in the first half of 2022.

It's still early for the two-wheeler industry to clarify whether continuous growth is here to stay with nine months of the fiscal year remaining. However, the plentiful rainfall across the nation is encouraging for the agrarian-led economy as well as the advantages that first trickle down to the two-wheeler segments before spreading to the rest of the automobile industry.