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Two-wheeler Brands Plagued With High Inventory Cut Production In November

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The festive season was not great for many brands this year

In November 2021, 2-wheeler production is set to dip by up to 35 percent

A dull festive season and huge inventory suggest that 2-wheeler production in November 2021 will reduce by up to 35 percent compared with October, in India.

The tentative production schedules of 2-wheeler manufacturers suggest that output maybe cut between 20 and 35 percent, with the projected figure being between 13.5 lakh and 14 lakh units this month.

This would mean that after November 2012, when 2-wheeler output was 12.7 lakh units, this November would see the lowest production.

The country’s top 2-wheeler brand, Hero MotoCorp did not have a good festive season this time around, as the company has an inventory of around 5 to 6 weeks post the festive season.

Massive increase in the prices of 2-wheelers over the past 24 months has not helped matters

TVS Motor Company, and many other top brands have also suffered and industry experts project only a marginal increase in wholesale volumes for the remaining months of this financial year (FY22).

The 2 obvious factors that have dampened the spirits of 2-wheeler buyers are the record-high petrol rates and a steep increase in the prices of motorcycles and scooters.

In the last 2 years, the asking price of 2-wheelers have grown by 40 percent, clearly impacting the buying decision of many a potential customer.

Sadly, the situation is only expected to continue into the last month of this calendar year, thereby causing the 2-wheeler market to shrink in FY22. It would make this the third straight year of volume decline.

Source

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