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MOSL: AUTOMOBILES-BJAUT expands market share led by price actions in CT100; Scooter – 125cc segment up ~50%

Automobiles: BJAUT expands market share led by price actions in CT100; Scooter – 125cc segment up ~50%, 110cc sales decline for the first time

 

In this report, we present key highlights from our analysis of brand-wise data for the domestic two-wheeler (2W) industry.

Domestic 2W industry sales are up by 11.5% in YTD FY19. Notably, motorcycle growth (+14.7% in YTD FY19) is outpacing scooter growth (+6.8%) for the first time in many years. Consequently, scooters market share has shrunk by 140bp to 32.7%. Growth in motorcycle sales has been broad-based, with the economy, executive and premium segments growing by 26.7%, 9.1% and 15.3%, respectively. A rural recovery and pricing actions are driving healthy momentum in the economy segment, which is growing at 20%+ for the second consecutive year. TVSL (-360bp) and HMCL (-320bp) ceded market share to BJAUT (+670bp) in the economy segment.

• Motorcycle sales are up by 14.7% and scooter sales by 6.8% in YTD FY19. Thus, the share of scooters moderated to 32.7% from 34.1% in YTD FY18.
• Rural recovery and price actions by BJAUT drove a revival in the economy segment. Economy segment is growing at the strongest pace in last seven years at 26.7% in YTD FY19 (+23% in FY18), followed by premium (+15%) and executive (+9%). Premium segment (ex RE) is up by 16% in YTD FY19.
• Growth in the scooter segment is led by the 125cc category, which is estimated to have grown by 49.6% in YTD FY19 to 0.65m units. On the other hand, the 110cc scooters segment has witnessed a first-ever decline of 0.5% to 2.4m units.
• In the economy segment, BJAUT gained market share (+670bp) at the expense of TVSL (-360bp) and HMCL (-320bp). BJAUT's volumes in Economy segment grew ~38%, whereas HMCL's volumes grew ~20%.