Two-wheeler majors log lower salesJanuary 2nd, 2009 - 5:02 pm ICT by IANS
Chennai, Jan 2 (IANS) The stimulus shot of 4 percent cut in excise duty will take some more time to rejuvenate the two-wheeler manufacturer. Even after offering discounts, major players have reported lower sales last month as compared to December 2007. The three major two-wheeler manufacturers - Hero Honda, Bajaj Auto, and TVS Motor - saw their sales going down in December 2008, as compared to sales in the corresponding month the previous year.
However, bucking the trend has been India Yamaha Motor, which saw its sales zooming to around 16,000 units from 5,524 units sold in December 2007.
The world’s largest two-wheeler maker, Hero Honda, sold 215,931 units last month, down from 240,532 units sold in December 2007.
Last month, Bajaj Auto and TVS Motor sold 119,215 and 89,285 units respectively, as against 177,249 and 97,576 units in December 2007.
According to Bajaj Auto managing director Rajiv Bajaj, the decline in sales mirrors the efforts to cut the inventories at the dealer points.
Bajaj Auto sold 118,510 motorcycles last month, down by 57,931 units compared to the December 2007 sales.
The company plans to launch new models this year to arrest sales slowdown. The first one will be a 125cc vehicle in the sports segment.
On the other hand, TVS Motor sold 40,057 units last month, in comparison to 51,293 units recorded in December 2007.
Citing its cumulative sales for the period April to December 2008, a 2 percent growth when compared to the same period the previous year, the company attributed last month’s sales reduction to inflation, inadequate availability of finance and high interest rates.
During the month, the company exported 16,930 units of two wheelers as against 14,402 units in the corresponding period the previous year.
In response to the reduction in central value added tax by the government, the company reduced prices between Rs.700 and Rs.2,000 across its two-wheeler models, thereby passing on the benefits of the duty cut to consumers.