Have 2-Wheeler Sales Increased by 9% in September Due to GST Cuts and Festive Demand?
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Synopsis
In a remarkable turn of events, India's two-wheeler sales surged by 9% YoY in September, fueled by festive demand and a favorable GST cut. Notable players like Hero MotoCorp and Royal Enfield led the charge, indicating a robust recovery in the market. Discover how this trend could shape the future of two-wheelers in India.
Key Takeaways
- 9% YoY increase in two-wheeler sales in September
- GST reduced to 18% for motorcycles up to 350 cc
- Hero MotoCorp and Royal Enfield led the sales surge
- Strong demand during the festive season
- Exports increased by 17% YoY
New Delhi, Oct 4 (NationPress) India’s two-wheeler manufacturers have experienced a notable 9% year-on-year (YoY) increase in dispatches for September, surpassing the two-million mark. This surge is attributed to heightened demand from the festive season, following a reduction in Goods and Services Tax (GST).
The government has lowered the tax on motorcycles with an engine capacity of up to 350 cc to 18%, down from the previous 28%.
Hero MotoCorp, India's largest two-wheeler manufacturer, reported a 5% increase in wholesale volumes, totaling 647,582 units, while its registrations saw a significant rise of 19% to 323,230 units.
Honda Motorcycle and Scooter India (HMSI), the second-largest player in the market, exhibited the weakest performance among competitors, with volumes growing just 3% to 505,000 units. The company did not provide any reasons for this subdued growth.
TVS Motor Company, based in Chennai, achieved a 12% increase in volumes, reaching 413,000 units, driven by strong demand for scooters. Bajaj Auto, located in Pune, also saw dispatches rise by 5% to 273,000 units.
Royal Enfield, part of Eicher Motors, made the most significant gains, with volumes soaring 43% to 113,000 units in September.
Analysts noted that the month started slowly due to the Shraad period, considered inauspicious for purchases. However, demand picked up significantly in the final week, coinciding with the start of Navratri and the GST relief.
According to a report by Axis Securities, the automobile sales data for the month displayed a varied trend. While there was strong growth in two-wheelers, three-wheelers, commercial vehicles, and tractors, passenger vehicle volumes declined on a year-on-year basis.
The report indicated that domestic two-wheeler sales increased 6% YoY and 18% month-on-month, bolstered by strong performances from Royal Enfield (up 43% YoY), Suzuki Motorcycle (up 37% YoY), and TVS Motor (up 12% YoY).
Exports remained robust, climbing 17% year-on-year and 2% month-on-month, led by Bajaj Auto, Hero MotoCorp, Royal Enfield, and TVS.
Moreover, three-wheeler sales exhibited a 12% YoY and 6% MoM increase, primarily driven by Mahindra and Mahindra (up 30% YoY) and TVS (up 60% YoY), as noted in the report.
Point of View
It’s clear that the robust growth in two-wheeler sales reflects a positive shift in consumer sentiment, especially during festive seasons. The government’s proactive measures, such as reducing GST, are pivotal in stimulating demand. This trend could indicate a resilient economic recovery in the automotive sector.
NationPress
04/10/2025
Frequently Asked Questions
What caused the increase in two-wheeler sales?
The increase in two-wheeler sales was primarily due to the festive season demand and a reduction in GST from 28% to 18% on motorcycles up to 350 cc.
Which companies reported significant sales increases?
Hero MotoCorp and Royal Enfield reported significant increases in sales, with Hero MotoCorp's wholesale volumes up by 5% and Royal Enfield's sales surging by 43%.
How did exports perform in September?
Exports remained strong, rising 17% year-on-year and 2% month-on-month, driven by companies like Bajaj Auto, Hero MotoCorp, Royal Enfield, and TVS.
