Robust year on year growth seen in the 2 wheeler segment, 12.5% YoY
In July 2024, several automakers reported a YoY decline in sales numbers, including Maruti Suzuki and Tata Motors. On the one hand, the car segment in India witnessed a setback, while the two-wheeler sector experienced notable growth of 12.5% year-on-year in July 2024. In the 2W segment, a total of 14,41,694 units were sold in July 2024, compared to 12,82,054 units in July 2023. While some manufacturers experienced significant growth, others witnessed declines in sales, which highlights the shifting dynamics of the two-wheeler market.
The 2W segment in India saw tremendous growth because of new government support programs and a better rural economy. The launch of new two-wheelers and better stock availability also significantly contributed to the growth of this segment.
Year-on-Year Comparison
July’24 July’23 Growth (%)
Honda 4,39,118 3,10,872 41.3%
TVS 2,54,250 2,35,230 8.1%
Bajaj Auto 1,68,887 1,41,990 18.9%
Suzuki 1,00,602 80,309 25.3%
Ather 11,088 8,062 37.5%
Triumph 66 60 10.0%
Honda is growing its market share at the expense of the rest of the 2W brands
Honda Motorcycle and Scooter India (HMSI) has once again emerged as the leading market player, with a remarkable growth of 41.3% in July 2024 compared to the same period last year. The company's flagship Activa scooter achieved 45% year-on-year growth, with sales increasing from 1,35,327 units in July 2023 to 1,95,604 units in July 2024.
On the other hand, the Shine model also saw significant growth of 21%, with sales surging from 18,826 units to 22,812 units in July 2024. The Honda Shine 125 recorded an impressive 67% increase, reaching 1,40,590 units compared to 84,246 units in July 2023.
Year-on-Year Comparison
July’24 July’23 Growth (%)
Activa 1,95,604 1,35,327 45%
Shine 22,812 18,826 21%
Shine 125 1,40,590 84,246 67%
As Honda's market share increases, the other two-wheeler manufacturers are taking a hit and struggling to retain their customer base and compete more aggressively.
Decline in sales & market share seen for Hero in July’24
While Honda continues to dominate the two-wheeler market, other manufacturers have only faced steady fortunes. These include India's largest two-wheeler manufacturer, Hero MotoCorp, which saw a 6.4% decline in sales, from 3,71,204 units in July 2023 to 3,47,535 units in July 2024.
The sales numbers of Hero Passion significantly dropped by 67% in July 2024 compared to the same period last year. Similarly, the Hero Super Splendor saw a similar fate with a 62% drop in sales, from 27,981 units sold in July 2023 to 10,534 units in July 2024. Once a strong player in the mid-range commuter bike segment, the Super Splendor’s performance has sharply declined, signaling a need for a strategy shift or model refresh.
Year-on-Year Comparison
July’24 July’23 Growth (%)
Hero Passion 11,399 34,253 -67%
Hero Super Splendor 10,534 27,981 -62%
This decline in sales highlights competitive challenges, especially from Honda, which means requiring Hero to come up with a new strategy to boost sales.
