With the economy slowly opening up after the coronavirus-triggered lockdown, a new question about the future of the economy appears on the horizon. Currently, there is hardly any industry that has not been impacted by COVID-19 and the two-wheeler industry is no exception. In this particular blog I am going to discuss the impact of COVID-19 on the Indian two-wheeler industry after listening to what the managements of all the four listed players have to say in their last two quarterly concalls.
Lets first look at the management commentaries in Q4FY20 concalls
Now let’s look at the management commentaries in Q1FY21 concalls
As we can see, restoration of demand is pretty quick with Bajaj Auto and Eicher Motor bookings reaching almost the pre-covid levels. Supply, however, remains a constraint for TVS Motors and Eicher Motors due to sporadic regional lockdowns. On the positives – Good monsoon, upcoming festive season, easy availability of financing and an inclination towards personal mobility remain the key demand drivers. The only factor dragging down the demand can be the falling income levels of customers but that can be very well managed by financing availability. All in all, we can reasonably expect demand coming back to pre covid levels from the second half of FY21.
Below is the chart for total two-wheeler sales for the last six months as compared to the corresponding months last year.
Looks like the sales numbers are catching up, already!