The automobile industry's performance in December 2023 was insightfully summarized by the Federation of Automobile Dealers Associations (FADA) revealing good developments in some areas.
Overall Sales Growth
In the month of December 2023, the automotive sector experienced a commendable Year-over-Year (YoY) sales growth, culminating in a total of 19,90,915 units. Notably, the two-wheeler (2W) segment emerged as a standout performer, boasting a remarkable 27.56% YoY growth, with sales surging to 14,49,693 units compared to 11,36,465 units in December 2022.
Monthly Dynamics
However, the month witnessed a Month-over-Month (MoM) decline of 35.49%, reflecting a drop from the festive high of 22,47,366 units sold in November 2023. Taking a broader view, the cumulative sales for the calendar year 2023 in the 2W category exhibited a robust growth of 9.45%, totaling 1,70,61,112 units, up from 1,55,88,352 units recorded in January-December 2022.
Dominant Players in the 2W Segment
1. Hero MotoCorp: Sustained Dominance
Hero MotoCorp, a stalwart in the two-wheeler industry, maintained its dominance by commanding a substantial market share of 31.98%. December 2023 saw sales reaching 4,63,593 units, a significant increase from the 3,30,666 units recorded in the same period of the preceding year. However, this impressive figure marked a notable MoM decline from the robust sales of 8,02,234 units in November 2023.
2. Honda: Robust Growth Trajectory
Securing the second position, Honda showcased strong performance with 3,44,139 units sold in December 2023, up from 2,94,477 units in December 2022. This growth can be attributed to successful new model launches including the Honda Activa H-Smart, Shine 100, SP160, and Dio 125 which garnered significant demand in the market.
3. TVS Motor: Surpassing Previous Benchmarks
TVS Motor exhibited robust sales growth, registering 2,32,695 units in December 2023, surpassing the previous year's figure of 1,76,605 units sold in December 2022. The company currently commands a 16.05% market share and has exciting plans, including the launch of the new TVS Apache RR 200, a highly anticipated faired bike in 2024.
4. Bajaj Auto Limited: Embracing Electric with Chetak
Bajaj Auto Limited witnessed significant YoY sales growth, achieving 1,82,030 units sold in December 2023, up from 1,26,157 units in December 2022. The highlight of this period was the introduction of the 2024 Chetak electric scooter, available in Premium and Urbane variants, priced at Rs 1.35 lakh and Rs 1.15 lakh, respectively, ex-showroom.
5. Suzuki Motorcycle India: Boosted Retail Sales
Suzuki Motorcycle India reported an upswing in retail sales, reaching 66,262 units in December 2023, compared to 53,214 units sold in December 2022 and the Burgman Street 125, Gixxer 155, and 250 series were among the popular models that contributed significantly to the increase in the company's overall sales.
Electric 2W Segment: Ola Electric Leading the Charge
In the electric two-wheeler segment, Ola Electric emerged as a leader, marking outstanding growth with 30,263 units sold in December 2023, up from 17,372 units in December 2022. The impressive sales were attributed to the Ola S1 X+, contributing significantly to the overall electric two-wheeler market.
Ola Electric's December to Remember Program
As part of the 'December to Remember' program, Ola Electric introduced reduced pricing for the Ola S1 X+, offering a substantial reduction from Rs 1,09,999 to Rs 89,999 (ex-showroom). However, Ather Energy experienced lower YoY sales, with figures dropping to 6,493 units in December 2023 from 7,695 units in December 2022, resulting in a decreased market share.
Performance of Other Electric Players
Piaggio witnessed improved sales, Greaves Electric experienced a significant surge, and Classic Legends posted lower sales. However, several other electric two-wheeler makers saw a dip in sales, bringing the total to 12,483 units in December 2023, compared to 28,102 units sold in December 2022.
The detailed analysis of two-wheeler sales in December 2023 presents a dynamic market scenario with established players and electric newcomers shaping the industry's landscape in a period of rapid evolution.