India’s Feb Bike Sales Climb On Wedding Demand, Easing Chip Shortages

India’s February Bike Sales Up Due to Wedding Demand, Alleviating Chip Shortages

Two of India’s top three publicly traded motorcycle manufacturers exceeded domestic sales projections in February as chip supply constraints eased, while sales of passenger vehicles continued to rise on the strength of demand for utility vehicles.

Domestic two-wheeler sales, an indicator of the financial health of India’s rural economy and demand among the country’s largest consumption sector, which is generally described as lower middle-income households, increased by double digits from the previous year.

Experts had anticipated a surge in domestic two-wheeler sales spurred by the wedding season and a reduction in the chip scarcity.

TVS Motor Co Ltd experienced the greatest increase in domestic sales at over 28%, followed by Bajaj Auto Ltd at 24.7% and Hero MotoCorp Ltd at over 15%.

Bajaj fell short of Emkay Global and Nomura analysts’ expectations for a 45% and 43% increase in domestic sales, while Hero and TVS exceeded the brokerages’ projections.

However, both Bajaj and TVS Motors’ overall monthly volumes were affected by sluggish exports, with Bajaj reportedly considering production cuts, as reported by the Economic Times.

The volatile economics of Nigeria, other African nations, and Latin American states have hampered the exports of Indian bicycle manufacturers.

Maruti Suzuki India Ltd, the market leader in the passenger vehicle (PV) segment, recorded a 10.1% increase in sales, while Tata Motors Ltd claimed a 7.4% increase.

The volume of large, popular, and more expensive utility vehicles increased by 32.3% at Maruti Suzuki and roughly 10% at Mahindra & Mahindra Ltd.

Analysts at Kotak attributed the increase in PV volumes to a small recovery in hatchback sales and high sales of sport utility vehicles (SUVs), which were supported by an improved chip supply.

In the meantime, commercial vehicle sales increased by double digits as fleet operators and logistics companies continued to make purchases before to the April 1 implementation of new fuel emission regulations, which will increase the price of buses and trucks.

The volume of Ashok Leyland Ltd increased by 26.7%, while Eicher Motors Ltd’s monthly sales increased by 24.5%. Tata, the market leader, reported a 2.6% decline in CV sales.