Local curbs put bike sales in slow lane, again

Localised lockdowns in states like Maharashtra, Madhya Pradesh, Gujarat and Rajasthan have started impacting adversely sales of motorcycles and scooters the past two weeks, said a top executive at the country’s second largest two-wheeler maker Honda Motorcycle & Scooter India (HMSI), adding demand should stabilise as the vaccination drive gains pace from April 1.Currently, 10% of HMSI’s distribution network in the western part of the country is closed on account of the restriction imposed by state governments to check the spread of the pandemic.“There is an impact on economic activity (due to the localised lockdowns). Earlier there were only night curfews. Now in many parts of Maharshtra, some parts of Madhya Pradesh, Gujarat, Rajasthan, there are day time restrictions. Our network is closed in these places which is affecting sales”, said Yadvinder Singh Guleria, director (marketing and sales) at HMSI. Guleria did not specify the quantum of the impact on sales.81811677With retail sales hit, the company’s inventory have increased in the range of 5-7 days in affected areas. Guleria informed HMSI has decided to curb dispatches to such places so as to not increase stock burden of dealers. “With new lockdowns, dealer inventory has witnessed a 5-7 uptick in few pockets, but this is manageable and not worrisome as we are now maintaining lower inventory levels at our network compared to pre-covid levels”, said Guleria.But even as uncertainties persist, HMSI is cautiously optimistic two-wheeler sales in the local market will grow in high-double digits in the new fiscal year, albeit on a low base. The upcoming marriage season is expected to accelerate buying due to many marriages postponed last year. The great Indian vaccination drive is further expected to bolster customer sentiments.Guleria added, “Already 60 million people have been vaccinated. The drive will gain momentum from April 1 when everyone aged above 45 years can get vaccinated. People will get more confident about the efficacy of the vaccine, which will be positive for overall market sentiment.”

from Economic Times https://ift.tt/3rGuuaY