Two-wheeler segment may see double digit sales dip this fiscal: HMSI

Honda Motorcycle and Scooter India (HMSI) expects two-wheeler sales to remain in slow lane this fiscal, with coronavirus lockdown having alrey taken its toll on dispatches in first quarter, a senior company official said. company, however, remains optimistic about long-term growth prospects of domestic two-wheeler industry.

It has gared from a survey that more people are w willing to buy a two-wheeler in order to stay safe and maintain social distancing amid COVID-19 pandemic.

"Literally, first quarter has gone so re is way you can cover in nine months for entire year. In fact, industry itself was alrey in slowdown mode and COVID-19 has only ded to worse situation," HMSI Director Sales and Marketing Yvinder Singh Guleria told PTI.

He ded that although sales have resumed in May, it is just beginning from zero to some business. "To say that this year sales are going to be positive, that is t possible...recovery is t possible this year, it will still be a double-digit de-growth in 2020-21," Guleria ted.

He expressed hope that situation may improve in next few months due to rmal monsoon and structural reforms in farm sector but even n benefits would accrue only in next crop cycle. "Agrarian ecomy may come back, we are seeing some traction in tractor sales as well, but negative (trend) will still stay in 2020-21 and maybe we can see some growth in next fiscal because base itself will be much lower," Guleria said.

On insights from sales in May, where HMSI retailed over 1.15 lakh units, he said more than one-third of buyers shifted from public transport in order to follow social distancing rms. "re is t much change in buying behaviour. Around 55% preferred cash while 45% financed two-wheeler," Guleria said.

Also, buyers prefer low down payment kind of schemes as y want to preserve cash, he ded. "Product enquiry is increasing, after-sales lo is increasing, new customers have started coming into workshops, in long term we need to see how it will pan out," Guleria ted.

He also emphasised that customers will t compromise on safety and hygiene when visiting a sales or service outlet.

Asked if company would still go ahe with its new launches considering market situation, Guleria said: " product launch has been put off shelf, launches will happen as planned earlier for this financial year." He said that 250 supply chain partners of company, having 308 plants, received green signal in May-end to resume operations. Production at company's plants, however, will be ramped up as per market demand, he ded.

(Im credits: PTI)