Two-Wheeler Sales Jump 9% in September on GST Cut, Festive Demand

New Delhi — India’s two-wheeler sales rose 9 per cent year-on-year (YoY) in September, crossing the two-million mark, as festive season demand picked up momentum following the government’s reduction in Goods and Services Tax (GST) on motorcycles up to 350 cc from 28 per cent to 18 per cent.

Hero MotoCorp, the country’s largest two-wheeler maker, posted a 5 per cent rise in wholesale volumes to 647,582 units, with registrations surging 19 per cent to 323,230 units.

Honda Motorcycle and Scooter India (HMSI), the second-largest player, reported subdued growth, with dispatches inching up 3 per cent to 505,000 units.

TVS Motor Company saw volumes climb 12 per cent to 413,000 units, driven by strong scooter demand, while Bajaj Auto registered a 5 per cent rise to 273,000 units.

Royal Enfield, owned by Eicher Motors, outperformed peers with a 43 per cent surge in volumes to 113,000 units, its sharpest rise in recent months.

Analysts noted that sales were initially muted during the Shraad period — considered inauspicious for new purchases — but picked up strongly with the onset of Navratri and the GST cut.

A report by Axis Securities highlighted that the broader auto sector showed a mixed trend in September. While two-wheelers, three-wheelers, commercial vehicles, and tractors registered healthy growth, passenger vehicle volumes slipped on a YoY basis.

Key highlights from the report:

• Domestic two-wheeler sales: Up 6% YoY, 18% MoM, led by Royal Enfield (+43% YoY), Suzuki Motorcycle (+37% YoY), and TVS Motor (+12% YoY).

• Exports: Rose 17% YoY and 2% MoM, driven by Bajaj Auto, Hero MotoCorp, Royal Enfield, and TVS.

• Three-wheeler sales: Grew 12% YoY and 6% MoM, led by Mahindra & Mahindra (+30% YoY) and TVS (+60% YoY).

Industry experts expect demand to remain robust in the coming weeks as festive buying continues, further supported by the GST relief.

With inputs from IANS