Car sales growth in June might appear very strong because of last year’s low base, but for two-wheelers, which were coming off a high base, June volume growth has been modest at best. While the next few months may be strong because of the festive season, growth may face challenges if the monsoon proves deficient, feel industry executives.
In June, market leader Hero MotoCorp recorded a similar growth rate as May, with an 8% jump to 5.41 lakh units. But at rival Honda growth slowed down to 28% at 3.23 lakh units — in May Honda's sales had risen 55% to 3.55 lakh units.
For Bajaj Auto, domestic volume growth remains elusive. its two-wheeler volumes rose 3% to 2.62 lakh units, but about a third of that was from exports. In terms of pure domestic volumes, Bajaj likely saw a drop, analysts say, and growth is expected after the new Discover is launched this month.
Chennai-based TVS posted a 23% jump to 1.68 lakh units, lower than the 26% jump in May to 2.01 lakh units.