For two-wheeler companies, Diwali may arrive on a Mobike this festive season

Hero MotoCorp, Bajaj Auto, TVS Motor and Royal Enfield are major players who have charted out a new output plan for September-October, adding to their earlier Diwali plans drawn up in June-July. Continued preference for personal mobility choices a...

Mumbai: Diwali may arrive on two wheels this time. Scooter and motorbike manufacturers are aiming for bumper festive season sales, with almost all of them revising their September-October-November production plans upwards by 8-25% to cater to the anticipated high demand.

Hero MotoCorp, Bajaj Auto, TVS Motor and Royal Enfield are major players who have charted out a new output plan for September-October, adding to their earlier Diwali plans drawn up in June-July. Continued preference for personal mobility choices and strong rural buying are manufacturers’ reasons for betting on a brighter Diwali.

Executives who spoke off record said the cumulative production plan for September, October and November are seen at 1.65 million, 2 million and 1.6 million, respectively. The one caveat is re-imposition of local lockdowns that may affect the supply chain. Plus, year-on-year sales growth rates in October and November may break into double digits on account of low base last year.


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Hero MotoCorp CMD Pawan Munjal, in his address at the auto component makers’ annual convention last week, said he is reviewing the supply chain issues daily with an eye on ramping up production to meet demand.

1.65m Units in Sept
“We are in a very fortunate situation of having a much bigger demand than what we can make today,” he said.
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“The monthly production target of two-wheeler makers is revised upwards by 8-21% for September compared with the tentative monthly share with vendors during mid-August,” said a senior executive at a vendor.

According to the revised plans, India's largest bike maker Hero MotoCorp is looking at producing 720,000-730,000 units for September while TVS is targeting production of 280,000-300,000 units and Royal Enfield is getting ready to make 60,000-65,000 units. This could translate into production of more than 1.65 million units in September. Hero will target its highest-ever output in October at 800,000 units and while TVS Motor is aiming at 400,000 units, which will be a record for the South India-based two-wheeler maker.

Rakesh Sharma, ED at Bajaj Auto, says the production plan for the coming months is definitely 20-25% higher over previous months in preparation for the festive season.

“The inventory position is at about 30 days and the supply chain is still very fragile, hence the focus is on ramping up capacity and meeting demand. People are learning to live with Covid and we expect things to be good,” added Sharma.
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An email sent to Hero MotoCorp and Royal Enfield did not elicit any response till the time of going to press. TVS Motor Company declined to comment on ET’s queries.

Several two-wheeler suppliers said production levels reached pre-Covid levels in August and the order pipeline continues to be encouraging.
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