Two-wheeler sales fell by 6% on-year to 4.67 million units in the first three months of this financial year. While scooter sales remained almost flat at 1.66 million units, those of motorcycles dropped by 9% to 2.9 million units. Entry motorcycles having up to 110cc engines comprise 45% of all motorcycles sold in the country.
Speaking to ET, Tsutsumu Otani, president, HMSI, said while the Indian two-wheeler market is expected to record growth in FY26, it will fall short of the peak of over 21 million units recorded in FY19 prior to the pandemic. Two-wheeler sales grew by 9% to 19.61 million units last fiscal.
“While the market for scooters has been mostly growing, demand for motorcycles is under pressure, especially at the entry-level. These motorcycles are mostly sold in rural areas, where the growth in farm income is not so good,” said Otani. “Rains too have been erratic, excess in some parts and scanty in others, which has also affected demand.”
According to an analysis of data compiled by the Commission for Agricultural Cost and Prices (CACP), farmers have been hit by stagnating incomes and declining profit margins. For nearly all major crops, the growth in agricultural income has not kept pace with the rural inflation rate, denting consumption.
Otani expects demand momentum in rural and semi-urban markets to pick up post monsoons, and at the onset of the festive season. “Customers in rural and semi-urban areas still tend to wait and make purchases during festivals like Dussehra and Diwali. Among buyers in urban markets, the propensity to make purchases during this period is not as much,” he noted.In addition to petrol-powered motorcycles and scooters, Otani said he sees further growth opportunities for electric scooters in the medium to long-term, depending on the pace of development in charging infrastructure.Otani also said HMSI sees a lot of opportunity to enhance sales to women buyers, given a large number of this population enters the workforce every year. Women buyers prefer electric scooters, given the ease and comfort of riding them, he said adding, male buyers currently comprise about 90% of its sales.
Overall, Otani said HMSI is aiming to boost its domestic market share to 30% by the turn of the decade from 27% currently. The company will introduce multiple products in an effort to drive sales, he said without elaborating. The company will also continue to keep its focus on profitability, Otani said.
HMSI’s local sales grew by nearly 18% to 5.33 million units last fiscal. Rival Hero MotoCorp sold 5.61 million units in the same period.
