In Part 1 of this analysis, we looked at Passenger Car dispatches in December 2014 by segment and OEM. In Part 2 of the analysis, we evaluated Utility Vehicles and Vans last month. Part 3 of the analysis discussed Commercial Vehicles dispatches across all segments. In the concluding part of the sales analysis, IAR looks at Two-Wheeler dispatches during December 2014 acres segments and OEMs.
Two wheelers are relatively unmoved by uncertainties like price increases due to excise duty roll-backs and we did not expect any major deviations from ongoing trends in December 2014.
The Scooters segment has had a strong year, growing faster than any other segment in the two-wheeler market. December 2014 continued the trends with a near 24% improvement in industry dispatches at 374159 units. Last December, Scooters had accounted for 301794 units. This was the sixth consecutive December of growth for Scooter dispatches and the strong growth is an indicator that there is more of it to come in 2015.
The growth was led by segment leader Honda, which dispatched 208465 units, a 24.7% jump over December 2013 dispatches of 167147 units. Needles to say, this was the best December ever for the company in the Scooters segment.
Rival hero Motors is a much smaller player in the segment and accounted for 74509 units, a 21.55% jump over December 2013 dispatches of 61298 units.
TVS Motor has received a good response for the Jupiter scooter and December dispatches jumped up 28.5% year-on-year. Dispatch volume was 51575 units as compared to 40136 units dispatched in December 2013.
Yamaha and Suzuki had comparatively sedate Decembers. While Yamaha’s dispatch volumes went up by 15.8%, Suzuki managed a 14% improvement in dispatch volumes.
In comparison, niche premium player Piaggio managed much better growth numbers, albeit on a very small base. The Italian brand dispatched 1901 units in December, a 74.7% jump over December 2013 dispatches of 1088 units. However, this was still significantly lower than December 2012 dispatches of 3033 units.
Mahindra also had a good month, again on a small base. In December 2014, the company dispatched 4136 units, a 43.2% increment from December 2013 volume of 2888 units. However, Mahindra has a long way to reach its past volume highs of 14715 units in December 2010.
MOTORCYCLES SUB 125CC
In what is bad news for Hero MotoCorp, the sub 125cc Motorcycles segment suffered a serious volume erosion in December 2014. Overall, the segment accounted for 629647 units in the month, a 8.74% decline from 689915 units dispatched in December 2013. This is the second consecutive year of decline in December volumes for the segment. Dispatches in December 2014 were the poorest in the last four years.
Market leader Hero did well in falling lesser than the segment. The company dispatched 429984 units in the month, a 2.77% decline from December 2013 volumes of 442256 units. Again, this was the worst December dispatch volumes for the manufacturer in the last four years.
Meanwhile, rival Honda improved its share of the segment with a 13.97% growth in dispatches at 106675 units, compared to 93596 units in December 2013. This was the best December ever for the company. The launch of the CD 110 Dream has provided Honda with a bike at the lower end of the segment and has helped improve volumes.
Bajaj’s disastrous run in the sub 125cc segments took a turn for the worse in December as the manufacturer lost nearly half its dispatch volumes from last year. In December 2014, Bajaj Auto dispatched 53697 units, 47.5% down from 102182 units it had dispatched last December. This decline made December 2014 the worst in last six years for the company in the segment.
TVS Motor dispatched 26847 units of sub 125 cc motorcycles in December 2014, a 6.1% decline from previous year. The decline meant that this was the worst December in the last five years for the manufacturer in the segment. Like Bajaj Auto, TVS has to tweak its game at the entry-level end of the market if it wants to fight for market share.
Suzuki is fast losing the plot in the sub-125cc Motorcycle segment and December 2014 saw the company dispatching all of 820 units, 70% down from December 2013. This made it the worse December ever for the company in the segment.
Yamaha also had a bad month as the company’s portfolio in the sub-125 cc segments is becoming stale. In December 2014, Yamaha dispatched 2925 motorcycles, a fall of 33.2% from December 2013. This fall in dispatches made it the worse December in the last six years for the company.
Mahindra’s dispatches in the segment also halved in the month with the company sending less than 8700 Motorcycles to dealers as compared to 16166 units it had dispatched in December 2013.
MOTORCYCLES 125CC – 250CC
The good news for Bajaj Auto is that the 125cc — 250cc segments of motorcycle have been expanding. December 2014 was no different and overall dispatches in the segment were 120830 units, a 22.12% growth from 98943 units dispatched in December 2013. However, the segment has a long way to go before crossing the previous highs of December 2010 when dispatches were 211629 units.
Leading the growth was
Bajaj Auto TVS Motor, which recorded a 91.9% growth in dispatches at 20087 units. The company had dispatched 10466 units in December in the previous year. This was the best December volumes for the company in the segment in the last six years.
Segment leader Bajaj Auto dispatched 52540 units in the month, a growth of 58.62% over December 2013 dispatches of 33724 units. This was not the best of Decembers for the company as it had dispatched more than 97000 units in December 2010.
Another company delivering solid numbers in the segment was Yamaha which saw a 19.3% jump in dispatches at 26163 units. In December 2013, Yamaha had dispatched 21934 units.
Suzuki is receiving a favourable response for the Gixxer as compared to the GS 150 which could never set the sales charts on fire. In December 2014, the company dispatched 5197 units, a huge statistical jump considering it had dispatched only 205 units last year. Gixxer dispatches have already bettered the GS150’s December sales record of 4619 units in December 2010.
It was a bad month for both Hero and Honda in the 125cc – 250cc segment. Hero saw a 81% drop in its dispatches in the segment. At 2139 units, Hero is increasingly becoming a marginal player in the segment despite having multiple products in the market. These were the worst December numbers in the last six years for the company in the segment.
Honda dispatched 14704 units, a drop of nearly 33% from last year. These were the worst December numbers for the brand in the last six years, barring December 2012.
The Big Bikes (>250 cc) segment has been on fire for some time and the trend continued in December 2014. Royal Enfield dispatched 28179 units in the month, a growth of 47.8% over December 2013 volumes.
Bajaj-KTM has launched a number of new models in 2014 and December dispatches were 682 units, a 161.3% jump over December 2013 volumes of 261 units.
Harley-Davidson is riding high on the success of the Street 750. The entry-level Harley considerably lowers the entry point for H-D bikes in the country. December 2014 dispatches were 370 units, a 351% jump over December 2013 dispatches of 82 units. Normally, Decembers are a little slow for Big Bike manufacturers like Harley as a number of customers want to time their big ticket purchases with the festive season.
Rival Triumph has made a stellar beginning in India and December 2014 dispatches were 86 units, 146% up from previous December dispatches of 35 units.
TVS is the only remaining manufacturer still catering to the Mopeds segment. While Mopeds had been fading into irrelevance, there has been a mini-revival of sorts in the last year.
December 2014 accounted for nearly 59000 units dispatched, a 10.2% growth over previous year. The revival should be an impetus for TVS to work on expanding their product portfolio in a segment that is clearly not dying in a hurry.
IN THE NEXT POST, IAR LOOKS AT THE TRENDS IN 2014 AND HOW 2015 IS EXPECTED TO PAN OUT.