With over 150% spike in retails, June turned out to be the first confidence booster, says director, sales and marketing, HMSI
Honda Motorcycle and Scooter India Pvt Ltd (HMSI) – country’s second largest two-wheeler manufacturer - on Wednesday, reported a 55% year-on-year decline in domestic sales at 2,02,837 units in June. Pandemic-related disruptions led to the decline. On a sequential basis, though, the company reported a robust 275.62% jump in dispatches as a result of robust recovery in demand for entry level two-wheelers in rural and semi-urban markets
In May, the company reported sales of just 54,000 motorcycles and scooters after restarting manufacturing operations in its Haryana, Rajasthan and Karnataka factories.
The Japanese manufacturer also reported 68.43% y-o-y decline in exports to 8,042 units in June.
According to Yadvinder Singh Guleria, director, sales and marketing, Honda Motorcycle and Scooter India (HMSI), around 95% of Honda dealers resumed their business and the supply chain further stabilized to align with the rebooting of production operations in all the four plants.
“With over 150% spike in retails, June turned out to be the first confidence booster. Honda 2Wheelers created new buzz in the market introducing maximum number of four BS-VI models in just one month - CD 110 Dream, Grazia 125, 2020 Africa Twin and Livo. We are also witnessing a new demand getting unlocked with preference to personal mobility over public transport and two wheelers becoming first choice to this shift in the market," added Guleria.
Vehicle manufacturers like HMSI had to close their factories and showrooms from March 22, following the lockdown announced by the union and state governments to contain the spread of the Covid-19 pandemic. However, the company, in the meantime, worked with its suppliers and dealers to create standard operating procedures (SOPs) that needed to be followed once manufacturing and retail operations resumed.
Despite witnessing decent recovery in retail sales, automakers like HMSI, Hero MotoCorp, Hyundai, Maruti Suzuki and others are struggling to ramp up manufacturing due to disruption in supply chain network. The prevailing lockdown in Chennai and increased inspection of imported parts from China are also likely to cause major problems for automakers and their suppliers.