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2-W space reports high double digit decline on MoM basis

News: Except Royal Enfield (Eicher Motors) all players reported high double digit sequential decline in sales volume in November 2021. Hero MotoCorp (HMCL) posted 36.2% decline to 3.5 lakh units while Bajaj Auto volumes stood lower by 13.5% to 3.4 lakh units (domestic sales declined by 27% MoM while exports were largely flattish). Royal Enfield brand at Eicher Motors was the outlier and reported 17% growth at 51,654 units.

Views: In the 2-W space, the decline was more in the scooter segment vs. the motorcycles. Within the motorcycle sub-segment, entry level space witnessed the steepest decline. The 2-W space continues to lag amid muted festive sales (down 18.5% YoY in the 42 day festive period) and high channel inventory (~40-45 days at the end of October 2021) .

Impact: Negative