Second Covid Wave That Has a Big Impact on Motorcycle Sales: Report

Second COVID The waves are having a bigger impact on the motorcycle market than before, with April sales declining by 30-50% so far. Mini holiday season Reportedly during the month. FCMs reported that small cities were affected by the second wave (unlike the first wave), as the incident reported in the second week of April peaked in September last year.

Gudi PadwaMaharashtra’s main festival, which fell on April 13, and the nine-day fasting period Navrarati began on the same day last week.

Festival period like Navaratri According to the report, Gudi-Padwa has a significant share of annual vehicle sales nationwide.

If demand does not recover between the mini-holiday season and the wedding season, pointing out that motorcycle retail sales have fallen sharply during the month (MTD), the recovery in demand may be postponed until October. Said the report. This is the main festival season.

Dealers said it started in April, when inventory was high, due to factors such as year-end push, high sales expectations from the festival and wedding seasons (North and Central India), and local demand from rabbi harvests.

However, according to the report, sales from the holiday season are much lower, and the rabbi harvest, which is expected to recover motorcycle demand during this period, has not yet been carried out and is much less than usual.

According to Motilal Oswal, inventories of some major motorcycle manufacturers were manageable at the beginning of the month and many inquiries and reservations were supported. However, dealers saw a significant increase in cancellations as the number of Covid cases increased.

Maharashtra dealers in Gudipadova recorded only 50% of projected sales. UP retail was also affected by ongoing Panchayat Election, it said.

According to the report, unlike the first wave, the benefits of stagnant demand are limited in the second wave. Harvest and public transport not available.

Demand was further supported by cash in the market and a very small number of cases. However, coupled with minimal cash flow from migrant relatives and high medical costs, people are saving less in the second wave as a result of the slowdown in economic activity this year.

Therefore, with the current rate of increase in Covid cases, recovery is expected to be more backend.

On the wholesale side, wholesale sales fell 12% in 2009, while retail registrations fell 32%. This means that 23% of wholesalers were used to replenish their inventory. BS6 According to the report, this is a transition that is unlikely to be the case.

Since April 2020, OEMs have stated that they have been gradually raising prices since the launch of BS6 in order to cover the rise in commodity prices and recover the contribution margin of cost inflation. Motorcycle OEMs have raised prices by 5-8% until April this year (after April 2020). According to the report, this adds to the approximately 25% ultra-cost inflation seen at 2W from April 2018 to April 2020 and also acts as a deterrent. IAS MKJ Second Covid Wave That Has a Big Impact on Motorcycle Sales: Report

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