Bajaj sales up 37%

Bajaj Auto, the country's second largest motorcycle company after Hero Honda, opened the financial year with a 37 per cent jump in motorcycles sales in April to 188,518 units as compared with only about 7.5 per cent growth for Hero Honda.

Although Hero Honda remains the market leader, having sold 243, 879 vehicles in April, Bajaj's much faster growth in recent months means it has been closing in on the leader.

The motorcycle industry, according to a Bajaj Auto release, is estimated to have grown 21 per cent in the first month of this financial year.

The rivalry at the top of the industry is poised to gain a sharper edge with both Bajaj, which once ruled the two-wheeler market, and Hero Honda increasing their capacities.

Bajaj Auto's new plant in Pantnagar, Uttaranchal, is set to start production in the last quarter of 2006-07. Hero Honda, on the other hand, is yet to make a formal announcement on its plans for its third plant, though industry sources said the company would be setting up its new plant in Jaipur, Rajasthan.

In the meantime, Hero Honda's production capacity at its Dharuhera plant is set to increase from next month and therefore, the company, according to its company officials, is getting ready to address the next big season sales that will start in August-September.

The company is investing Rs 70-75 crore in Dharuhera to take its total capacity, including the Gurgaon plant to 3.6 million units.

In April 2006, Bajaj's Discover twins sold 66,137 units and the Bajaj Pulsar range recorded 32,700 units sale in April 2006. Two wheeler sales for Bajaj Auto, during the month registered a 29 per cent jump at 190,964 units as against 147,592 units in April 2005, the company said.

The combined two and three wheeler sales during the month also registered a 29 per cent increase at 212,123 units as compared to 165, 045 units in same month in 2005.

Total exports also grew by 67 per cent at 31,715 units in April 2006 against 19,007 in April 2005, the company said in a release.

Meanwhile TVS Motor Company has recorded 53 per cent sales growth in motorcycles in April 2006, clocking 80,862 units as against 52,825 in the same month last year.

Backed by growth in motorcycle business, overall sales of two-wheelers recorded 124,917 units last month compared to 92,400 units in April 2005, recording a 35 per cent growth, a company statement said.