TVS witnessed a steep rise in its scooter market share during the first quarter of FY2023.
The wholesale numbers of the Indian Automobile sector have risen in the first quarter of FY2023, indicating a cautiously optimistic mood in the industry. More notably, after a gap of four years, it is the scooter segment that has seen a big jump in sales figures – almost to pre-COVID-19 levels.
In FY2018, 67 lakh scooters were sold and it was the last time that scooter manufacturers had witnessed growth, until now. From FY2019, this segment has seen demand drop to around 4 lakh units in FY2022. While the slowdown had set in FY2019, the COVID-19 pandemic and the resultant lockdowns only exacerbated the situation.
Now, the Q1 numbers, as released by industry body SIAM, augur well for FY2023 – total two-wheeler industry sales of 37,24,533 units, which is a 54 percent year on year growth. More importantly, the scooter segment witnessed a 32 percent rise in sales with 12,07,903 units sold.
TVS Motor Company gains the highest market share
A close look at the scooter market wholesale in Q1 FY2023 – cumulatively as well as company-wise – reveals the numbers have doubled year on year. Of the nine manufacturers in SIAM’s list, three have ceded market share – Hero MotoCorp, Suzuki and Piaggio – while TVS Motor Company has made the maximum market share gains: nearly 5 percentage points from 20.64 percent to 24.91 percent in. In FY2022, when it clocked cumulative sales of 8,66,851 scooters, TVS had a 21.62 percent market share, with its best fiscal for scooters being FY2019, when it sold 12,41,327 units.
TVS’ total of 3,00,980 units in Q1 FY2023 marks a robust 141 percent year on year growth with demand rising for scooters such as the NTorq 125 and Jupiter as well as its only electric offering, the iQube.
Scooter market leader Honda is, of course, ahead of the competition with 5,62,050 units sold. HMSI recorded 110 percent growth in the first quarter and increased its market share to 46 percent from 44 percent a year ago.
Steady rise in numbers
With schools and colleges opening and many offices working in hybrid mode – two to three days in office – demand is picking up for scooters, which are typically seen as urban mobility solutions for different members of the family.
That said, high petrol prices are a matter of concern and could impact sales. In fact, all-time high petrol prices as well as the lure of electric mobility, albeit at a higher initial cost, is also drawing buyers to electric scooters. Proof of this market trend is that electric two-wheelers account for 3.6 percent of retail sales in Q1 FY2023.
All in all, the upswing in scooter demand is welcome news for manufacturers, who will be keeping their fingers crossed that the need to scoot on a two-wheeler grows stronger in the coming months and quarters.