The first month of the new calendar year did not bring any respite for the struggling two-wheeler and commercial vehicle sales in India. Continuing the downturn trend, major automakers in the two segments reported a double-digit decline in Year-on-Year sales as sentiments remained poor and production remained controlled to reduce BS-IV inventory as the Industry is due to adopt new emission norms in less than 2 months.

Separately, the Union Budget did not bring any relief to the stressed sector and going forward demand, to a large extent, will depend on the discounts offered by the OEMs( original equipment manufacturers) to finish their BS-IV inventory. According to reports, footfall in dealer showrooms has increased in the second half of January as two-wheelers are being offered at steep discounts.

Country’s largest two-wheeler maker Hero MotoCorp said its total sales in January declined by 13.9 per cent to 5,01,622 units, compared with 5,82,660 units sold in the same month of 2019. Hero sold 488,069 of two-wheelers in the domestic market in January 2020, compared with 569,866 units sold in the same month in 2019.

Country’s largest CV maker Tata Motors reported a 15 per cent drop in January sales of its CV at 31,348 units. In the medium and heavy commercial vehicle (MHCV) segment, the worst-hit category, Tata posted sales of 6,914 units for the previous last month, down 41 per cent YoY.

According to Girish Wagh, President of CV business unit, Tata Motors, “Domestic sales of CVs in January 20 were around 15% lower than last year. Retail was ahead of wholesale for the seventh straight month in a row, helping further stock reduction, as we move closer to BS-VI transition. With increasing buying interest, particularly amongst fleet owners, M&HCV sales in Jan’20 was the second-highest in the last 7 months. In small commercial vehicles, the buying interest continued to be better than other segments, resulting in YoY growth of 2%.”

Hinduja Group’s flagship company Ashok Leyland reported a steeper sales decline of 40 per cent in total commercial vehicle sales at 11, 850 units in January 2020. Its sales in the domestic market were down 41 per cent at 10, 850 units as compared to 18,533 units in January 2018, the company said.

In the two-wheeler segment, Chennai-based TVS Motor Company on Monday reported 16.8 per cent decline in total sales to 234,920 units in January 2020.

Its domestic two-wheeler sales were down 28.7 per cent at 163,007 units last month as compared to 228,654 units in the corresponding month in 2019.

TVS also informed that the company has completely transitioned production to BS-VI vehicles for domestic market.

“The 2020 range of BS-VI TVS vehicles is equipped with improved fuel economy, 90% reduction in emission, enhanced driveability in all conditions and many first in class features.  Equipped with RTFi and ETFi technology, these BS-VI vehicles offer enhanced connectivity, along with first in segment GTT – Glide Through Traffic capability and LED headlamp among others,” TVS said in a statement.

Budget brings no relief  

The Union Budget did not help ease the stressed sector and going forward demand, to a large extent, will depend on the discounts offered by the OEMs (original equipment manufacturers) to finish their BS-IV inventory. As per reports, footfall in dealerships has increased in the second half of January as two-wheelers are being offered at steep discounts