Bajaj, Hero Honda sales dip

The two leading bike makers in the country, Bajaj Auto and Hero Honda, have reported a dip in February sales on the back of falling demand for the entry-level models and restricted finance availability.

Bajaj Auto saw a decline of 8 per cent in motorcycles sales at 1,58,662 units in February as against 1,71,780 units sold in February 2007.

A release from the company stated, "A degrowth of about 13 per cent in the 100cc segment has offset stable sales in the 125cc plus segment, resulting in an overall degrowth of 10 per cent for the motorcycle industry."

Hero Honda had its biggest fall in monthly sales in FY08, as it slipped by more than 5 per cent at 265,431 units as against 280,515 units in the corresponding month of the previous year.

The company has blamed lack of finances as the reason for diminishing growth in the two-wheeler market.

Hero Honda sells 13 models in the market compared with 9 models of Bajaj Auto including scooters.

A city-based auto analyst said, "The restricted finance exposure in most markets has led to a decline in sales for Bajaj and Hero Honda.

The 100cc segment continues to fair poorly. However, sales are expected to pick up slightly this month due to the excise duty cut."

Tata Motors slashes Indica prices

Mumbai-based Tata Motors has reduced the prices of compact car Indica and Indigo CS model by Rs 8,500 - Rs 15,300. The price cut is a result of the 4 percentage points excise duty cut announced by the finance ministry on Friday.

The Indica will see a Rs 8,500-14,600 price cut, while the Indigo compact sedan will witness a drop of Rs 12,700-15,300.