Moped sales are back in green in the month of July. TVS Motor, the sole manufacturer of moped, sold 58,403 units in July 2020 as against 51,192 units, a year ago, an increase of 14 per cent.
In June 2020, moped sales dropped by 22 per cent to 40,620 units from 52,253 in June 2019. In 2019-20, total moped sales was 651,000 units as against 897,000 units, a drop of 27 per cent.
Moped sales have been under pressure during this period due to weak sentiment in the rural market since there was always a worry about delayed monsoon. Besides, the cost increase due to higher insurance premium, which led to 12 per cent increase on-road prices, huge discounting from many of the players in the economy motorcycles have impacted moped sales.
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But things have turned around in the month of June (SIAM did not release numbers for the month of March, April and May) after the good monsoon, positive sentiment in the rural and ET-Fi based mopeds started giving more fuel efficiency.
Company's management recently in an investor call said that moped is seeing a good response, thanks to the ET-Fi technology, which gives a host of benefits to the customer and also 15% fuel efficiency.
TVS Motor, India’s third largest two-wheeler maker, is the sole manufacturer of mopeds after Hero and Kinetic exited the sector many years ago.