Honda Motorcycle and Scooter India (HMSI) has recorded a 2 per cent spike in domestic two-wheeler sales in January 2017. The Japanese manufacturer seems to be on its way to recovery post the drop in demand in the last two months of 2016 with the announcement of demonetisation.
In December, Honda had reported a 23 per cent drop in demand in the domestic market. The tables seem to have turned in the last month though; Honda sold 3.68 lakh two-wheelers in January, which is a whopping 79 per cent more than what it had managed in December 2016. The company also reported a 40 per cent growth in exports, pushing the overall growth to 3 per cent. While the rest of the industry is still recovering, Honda has reported an all-time high market share of 29.2 per cent, cementing its second position in the Indian two-wheeler industry.
While the rural markets suffered the most in the last two months of 2016, Honda thinks that the new budget is sure to boost sales in these areas. Commenting on the budget, Yadvinder Singh Guleria, Sr VP, sales and marketing, HMSI said, "With almost 50 per cent of two-wheeler demand coming from rural and semi-urban India, budget 2017 should have a positive impact for the industry going forward.”
