India’s second-largest two-wheeler maker is, however, uncertain about the future outlook following fresh lockdowns in some markets, worries of a second wave of infections and other disruptions from the pandemic
Honda Motorcycle and Scooter India Pvt Ltd (HMSI) is seeing a robust revival in demand post the easing of lockdown curbs with the share of first-time buyers also rising compared to pre-covid-19 levels, said a senior company executive.
India’s second-largest two-wheeler maker is, however, uncertain about the future outlook following fresh lockdowns in some markets, worries of a second wave of infections and other disruptions from the pandemic. The company said its retail sales reached nearly 80% of pre-coronavirus levels by the end of May and early June.
Y.S. Guleria, director, sales and marketing, HMSI, said after the lockdown was eased, 30-40% of the company’s 1,000-plus dealers were found to be in covid-19 containment zones since a large portion of the sales network is in urban areas. By June, the figure improved to 95%, he said.
“Demand in the initial one week or fortnight was tepid since customers also had some anxiety of coming to dealerships. By the end of the month , we touched almost 70-75% of our retail sales. Now, it has gone to more than 80%. Demand has come up quite well but it’s too early to say when it will go back to the pre-lockdown level," Guleria said.
However, the company is being cautious about ramping up production, pointing to the reimposition of lockdown in Chennai. “This on-and-off is very difficult, and some reports say November will be the peak. If so, what happens to Diwali (which falls in November)," he asked, saying the firm needs to adopt a step-by-step approach for a sustainable business.
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