Hero MotoCorp, TVS Motors, and Bajaj Auto, the leading names in the Indian two-wheeler industry, witnessed a significant stock price surge on Thursday after reporting impressive sales figures for April 2024. The positive sentiment comes on the back of robust domestic demand, driven by regional festivals and the wedding season.
The upbeat performance was reflected in the stock market, with TVS Motors gaining 2.66% to Rs 2,116.95, Bajaj Auto rallying 2.58% to Rs 9,138, and Hero MotoCorp rising 1.7% to Rs 4,619.40. Eicher Motors, the maker of the iconic Royal Enfield motorcycles, also witnessed a decent increase of 0.75% to Rs 4,629.15.
The sales figures themselves were equally impressive. Hero MotoCorp, the country's largest two-wheeler manufacturer, sold a whopping 533,585 units in April 2024, translating to a remarkable 34.7% year-on-year (YoY) growth. This growth was primarily driven by a surge in domestic sales, which jumped 33% to 513,296 units, while exports witnessed a phenomenal 105% increase to 20,289 units.
Bajaj Auto, another major player, was not far behind. The company recorded a healthy 17% growth in total sales, reaching 388,256 units in April 2024 compared to 331,278 units in the same month last year. Domestic sales mirrored this growth with a 17% rise, while exports rose 18% to 139,173 units.
TVS Motor Company also had a reason to celebrate, reporting total sales of 3.83 lakh units for April 2024, representing a 25% YoY growth. The growth story was consistent across segments, with total two-wheeler sales rising 27% and electric vehicle sales witnessing a staggering 179.5% increase to 17,403 units. Exports for TVS Motors grew by a healthy 12% to 80,508 units.
Royal Enfield, the motorcycle division of Eicher Motors, continued its positive momentum with a 12% YoY rise in sales to 81,870 units in April 2024. The company's international business also performed exceptionally well, recording a robust 60.6% YoY growth at 6,832 units.
Industry analysts attributed the strong sales growth to several factors. Akshay Karwa, Research Analyst at Anand Rathi Institutional Equities, pointed towards a shift in consumer preferences towards premium offerings and a potential recovery in the rural economy. Karwa highlighted Hero MotoCorp as his top pick in the two-wheeler segment.
DK Mudaraddi, Research Analyst at Stoxbox, echoed similar sentiments, emphasizing the double-digit volume growth achieved by all major OEMs despite healthy stock levels. This, he argued, signifies strong domestic demand fueled by festive season buying. Mudaraddi also commended Eicher Motors' performance and selected Hero MotoCorp as his favorite owing to the company's strategic focus on expanding its market share in the premium segment, its re-entry into the electric vehicle space, and its operational efficiency initiatives.
The positive sales figures and expert commentary paint a rosy picture for the Indian two-wheeler industry. With strong domestic demand, a potential rural economic revival, and increasing consumer preference for premium offerings, the future looks bright for Hero MotoCorp, TVS Motors, Bajaj Auto, and other major players in the sector.
