Two-wheeler industry hopeful of growth in Q4 but wary of Budget: HMSI

 

The farmers' agitation and Budget are "sort of dark clouds" as the two-wheeler industry is hoping for a low single-digit sales growth in Q4 of 2020-21 on the back of a low base of previous year.

The ongoing farmers' agitation and the upcoming Budget are "sort of dark clouds" that need to be closely watched even as the two-wheeler industry is hoping for a low single- digit sales growth in the fourth quarter of 2020-21 on the back of a low base of previous year, according to a senior official of Honda Motorcycle and Scooter India (HMSI).

With gradual opening of colleges and universities expected from next year, the two-wheeler industry is also banking on student buying to add to the sales momentum.

"...we had the transition from the BS-IV to BS-VI so that gives us a lower base of Q4 of FY20 versus Q4 of FY21. Considering that we hope there could be a low single-digit kind of growth in Q4 of FY21," HMSI Senior Vice President, Sales and Marketing Yadvinder Singh Guleria told PTI.

He was responding to a query on how the company sees growth picking up in the January-March period for the two-wheeler industry, which has witnessed recovery in the festive period from COVID-19 induced disruptions.

In the run-up to the BS-VI transition from April 1 this year, automobile companies had reduced their production in order to prevent unsold BS-IV stocks.

Stating that there are not very high expectations from the fourth quarter, he said,"(There are) two or three things, sort of dark clouds -- the ongoing farmers' agitation and the Budget around February. These are the two things which need to be closely watched."

While the farmers' agitation will have a bearing on the rural sales, where motorcycles are predominantly sold, what sort of Budget will be presented is also something the industry is anxious of.