Royal Enfield-maker Eicher Motors Ltd. (EML) and Bajaj Auto have reported mixed sales numbers for December 2016. While sales of Royal Enfield motorcycles rose 42.3 percent in the domestic market, Bajaj Auto has reported 11 percent fall. Exports also show a similar trend for the two firms.
EML shares were trading 3.29 percent higher at Rs 22,530 apiece while Bajaj Auto was down 2.15 percent to Rs 2,577 at around 11.55 am on the BSE.
Royal Enfield posts robust growth
Royal Enfield motorcycle sales stood at 56,316 units last month in comparison to 40,037 units sold in December 2015, while exports grew 160 percent to1,082 units from 416 motorcycles, according to a regulatory filing by EML to the BSE.
Overall sales increased 42 percent to 57,398 motorcycles in December 2016.
The numbers were disappointing but on the expected line for the Pune-based company. Motorcycle sales fell 11 percent to 1,06,665 units in the domestic market from 1,20,322 units in December 2015, while exports declined 24 percent to 96,647 units from 1,27,460 motorcycles, YoY.
Overall motorcycle sales for December 2016 stood at 2,03,312 units, down 18 percent from 2,47, 782 units.
The company's sales for December 2016 including commercial vehicles dropped 22 percent to 2,25,529 units from 2,89,003 in December 2015.
Other prominent two-wheeler companies in India include TVS Motor, Hero Motocorp (HMCL), Honda Motorcycle and Scooters India (HMSI), Suzuki and Yamaha.
"2Ws are likely to be worst hit on account of demonetisation. We estimate HMCL volumes to decline 31% YoY in December-16 as its rural exposure is relatively high compared to peers. Volumes of Bajaj Auto are expected to decline 18% YoY as both domestic sales and exports are likely to decline. TVS is relatively well placed as a decline in other segments is likely to be partially offset by moped growth," Motilal Oswal Securities had said in a note earlier.