The scooter market in India is showing signs of recovery, with wholesales up 9% in August 2023 compared to the same month last year. However, sales are still below pre-pandemic levels, based on the August 2023 and April-August 2023 wholesale numbers released by SIAM.
Top Key Points
- The scooter market in India grew by 9% year-on-year in August 2023.
- The top three OEMs – Honda, TVS, and Suzuki – accounted for 84% of the market share.
- Honda remains the market leader, but its share has declined to 44.38%.
- TVS and Suzuki have seen strong growth in their market share.
- Electric scooter sales are growing rapidly, with Ather Energy and Bajaj Auto leading the way.
Here’s a summarized breakdown of the key points:
Market Overview:
1. Growth: After two years of weak sales, India’s scooter market showed growth with a 9% year-on-year increase in August 2023, recording 549,290 units.
2. Comparative Performance: The growth in the scooter market offset the slower growth in the overall two-wheeler category which only grew by 1% YoY. Motorcycle sales dropped by 4% in the same period.
3. Cumulative Sales : From April to August 2023, motorcycles redeemed their performance with a 5.66% YoY growth, whereas scooters grew by 3.88%.
Major OEMs:
1. Honda Motorcycle & Scooter India (HMSI) : Remains the market leader, selling over a million units. However, a 5% YoY decline is noted. The lack of an EV offering and increasing competition led to a drop in market share from 48.50% to 44.38%.
2. Suzuki Motorcycle India: Saw a 22% growth YoY in August 2023, increasing its market share from 12.91% to 15.22%.
3. TVS Motor Co: Achieved growth in sales and has a 13.44% penetration level of EV in its overall scooter sales.
4. Yamaha, Ather, Bajaj: Yamaha showed a significant growth of 48% YoY. Electric vehicle manufacturers like Ather Energy and Bajaj Auto also displayed strong sales.
Electric Two-Wheeler Market:
1. Ola Electric: Is the electric two-wheeler market leader with 30% market share. However, Ola’s data is not included in the SIAM analysis since they aren’t SIAM members.
2. Growth in EV: Both Ather and Bajaj showcased impressive growth rates in the EV segment.
Market Outlook:
1. Previous Year’s Sales : In FY2023, the sales of scooters increased by 26% compared to FY2022, though they haven’t reached the pre-Covid numbers of FY2020, FY2018, or FY2019.
2. Concerns: While the market has improved since the last year, full recovery hasn’t been achieved. The cost of two-wheelers has increased, and rural sales are yet to show consistent growth.
3. FADA’s Comment: There’s a broader range of models available now, but issues like inadequate rainfall might hamper rural demand.
4. Festive Hope: Despite the challenges, with the festive season starting in India, there’s optimism that demand will surge during events like Navratri and Deepawali.
Conclusion
The scooter market in India is showing signs of recovery, aided by growth in the EV segment. The coming months, especially the festive season, will be crucial in determining the trajectory of the two-wheeler market in the country.
