Hero, HMSI, TVS, M&M, Hyundai sales zoom in June
Two-wheeler majors Hero MotoCorp, TVS Motor Co and Honda Motorcycle and Scooter India (HMSI) on Monday reported sales growth in June, managing to overcome purchase postponements by buyers due to speculations over tax rates ahead of GST implementation.
Bajaj however, posted a decline of 25 per cent in total two-wheeler sales. The country's largest two-wheeler maker Hero MotoCorp reported 14 per cent increase in sales at 6,24,185 units last month as against 5,49,533 units in June 2016.
Hero MotoCorp said its sales were driven by strong demand for its motorcycles and scooters. The company sold 5,47,185 motorcycles in June this year, up 13 per cent over the corresponding month last year. Besides, the company sold 77,000 scooters, registering a 22 per cent growth over the year-ago month. Similarly, Chennai-based TVS said its total two-wheeler sales grew by 11.8 per cent at 2,68,638 units in June as against 2,40,236 units a year ago.
Scooter sales were at 90,448 units last month as compared to 67,590 units in June 2016 , up 33.8 per cent.
Another major player in the segment, HMSI reported 4 per cent increase in its total sales in June at 4,44,713 units as compared to 4,27,222 units in the same month last year.
The company said its scooters sales were up 2 per cent last month at 2,71,017 units as against 2,65,361 in June last year. Motorcycle sales were also up 2 per cent at 1,45,481 units as compared to 1,42,618 units in the corresponding month last year, HMSI said.
GST effect: Honda, Ford, TVS, Suzuki Motorcycle cut prices
Passing on to customers the benefits under the new GST regime, automakers on Monday announced price cuts ranging from Rs 350 in case of two-wheelers to Rs 3 lakh on Ford's SUV Endeavour. Honda Cars India, Ford as well as two-wheeler makers TVS Motor Company, Honda Motorcycle & Scooter India and Suzuki Motorcycle – all announced rate cuts arising out of the introduction of Goods and Services Tax from July 1. With the overall tax incidence on many of its car models coming down under GST, Honda Cars India Ltd (HCIL) cut prices by up to Rs 1.31 lakh with immediate effect to pass on the benefit to consumers.