Hero MotoCorp Back On Top, Ola Electric Registers Most E2Ws During Diwali Season

Mukul Yudhveer Singh
01 Nov 2022
02:09 PM
2 Min Read

TVS, Royal Enfield, Yamaha, Suzuki, & HMSI also show good growth YoY.

Hero MotoCorp Splendor
'The new trend probably shows that rural demand has bounced back this Diwali.'

Hero MotoCorp is back at the top of the two-wheeler (2W) registrations (retail sales) chart in October with a tally of 531,774 units (motorcycles+scooters). The company registered 535,894 units in the Diwali month of November last year. (Source Vahan Till 10.00 AM)

'The new trend probably shows that rural demand has bounced back this Diwali. Hero has a significant distribution advantage in rural India,' says Subhabrata Sengupta, Executive Director, Avalon Consulting.

Month-on-month (MoM), its registrations grew by over 100%, as 267,272 units of Hero 2Ws were registered in September, the month when Honda Motorcycle & Scooter India (HMSI) had overtaken Hero.

However, HMSI’s tally of 421,276 registrations in October fell short of Hero's by over 100,000 units. The company grew 14.92% YoY by registering 421,276 units in October, compared to 366,579 during Diwali 2021.

'Hero's 100 cc sales seem to have come back on track. The festival season has played an important role,' noted Atul Chandel, Director, Autobei Consulting.

Suzuki Motorcycles India and Royal Enfield have registered the highest growth YoY. Chandel is of the view that demand for premium motorcycles is picking up in the country and these two companies will continue to do good in the future as well.

Suzuki grew 31.94% YoY compared to the festive season of 2021 with 64,635 2Ws registered this year during Diwali. Royal Enfield, on the other hand, grew 88.61% YoY by registering 69,573 2Ws, nearly twice as much from 36,888 bikes registered during Diwali last year.

Both Chandel and Sengupta are of the view that Royal Enfield's newly launched Hunter has helped it power sales. It is the most accessible Royal Enfield motorcycle in India at the moment. TVS Motor also grew 13.10% YoY this Diwali whereas Bajaj's registrations fell 0.68% YoY.

two wheeler sales Diwali 2022 Vs Diwali 2021

Ola Electric On Top Of E2W Sales

Not only did Ola Electric become the top-selling electric scooter brand in October but it also registered the most number of electric scooters in a single month with 15,752 units.

Sengupta credited Ola Electric's business model for the good showing. 'The start-up's business model enables greater reach in smaller towns. The trend also shows that people are willing to give them a chance,' he said.

Ola Electric recently introduced its most economical electric scooter S1 Air at INR 79,999. Chandel is of the view that no other electric scooter gives a similar kind of look and performance to the Ola S1. MoM, the start-up grew 59.51%.

Okinawa registered 13,332 electric scooters during this Diwali month. It posted 56.96%MoM growth from 8,494 units registered last month. However, Hero Electric only managed to grow 2.94% MoM with 8,441 electric scooters registered this Diwali, compared to 8,200 units last month.

Hero MotoCorp-backed Ather Energy posted 13.71% MoM growth by registering 7,135 electric scooters in October. 'Recent allegations of Hero Electric sourcing certain components from China might have hurt demand,' a consultant said.

While this festive season has been one of the best in the last two to three years, Sengupta and Chandel advocate caution ahead. According to the latter, people have been spending after two years resulting in good numbers. 'The way forward might not be the same,' he said. Whether it is sustainable or a one- time festive stretch remains to be seen, added Sengupta.

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