Honda Activa, TVS Jupiter, Suzuki Access 125 are among those scooters whose sales increased in July 2019
When we compare sales figures, we look at the sales of the previous year in the same time period. However, if you are looking for real market conditions in today’s perception you should see the sales of two-wheelers by MoM basis. See, last year conditions were different and same conditions cannot be applied in today’s times. There was no liquidity crunch last year in July 2019 as it is today.
I do not understand why people judge the market by looking at the previous year’s numbers. Now as we look at the sales of some scooters in the month of July 2019, they have increased when compared to the sales of June 2019. And this is a positive indicator that market sentiments are not that bad which are showcased everywhere comparing to the last year’s numbers.
The sales number of Honda Activa for July 2019 is 2,43,604 units which are more than 2,36,739 units Honda managed to push out of showrooms in June 2019. It might look minute but it is enough to show that market sentiments are not bad but it caused due to the unavailability of affordable loans.
TVS Jupiter posted 57,731 units of sales which is again more than 56,254 units sold in June. Suzuki Access 125 found 51,498 units in July which is again more than 49,366 units registered in June 2019. The market sentiments are now focused towards scooters or motorcycles which will give them maximum value for each penny spent.
When loans and finances are available for about 20% rate of interest, anyone will simply back off from purchasing any new two-wheeler. Before the liquidity crunch i.e, before October 2018, loans were available for as little as 10-12% from the NBFCs (Non Banking Financial Companies). Now the interest portion of the repayment is nearly doubled which is causing this slowdown.
Overall two-wheeler market has shrunk even further even on Month on Month basis. The banks (both Public and Private) are also holding their funds as they giving loans to the ones who are sure to pay back in the desired period. Once the liquidity problem is solved, we will get to witness a surge in sales of the two-wheelers.