Hero Honda fares well, Bajaj stumbles

2-WHEELERS

Hero Honda, the world's largest two-wheeler manufacturer, reported an increase of 12 per cent in its August sales after three months of decline even as rival Bajaj Auto's fell 6 per cent, marking its fifth consecutive month of falling sales.

Recent product launches by Hero Honda including Pleasure, Splendor NXG and the new Passion Plus helped swell its sales to 240,875 units against 215,076 units in August last year.

"This growth of 12 per cent is significant in the face of the slowdown in the two-wheeler industry which has continued due to the prevailing interest rate situation," said Hero Honda in a statement.

Bajaj managed to sell 170,203 units last month against 182,013 units in the same month last year.

"Lack of excitement in the 100cc segment continued to affect the company and industry, which resulted in the decline in motorcycle sales," Bajaj Auto said in a statement.

The company is gearing up for the launch of its next new model, scheduled for September 9. This 125cc bike is already being produced at Waluj, Aurangabad. The company is targeting sales of 20,000 units of the new model this month.

With production of the new motorcycle expected to reach 50,000 units in November, Bajaj expects a revival in the motorcycle volumes to exceed the sales of the previous year.

Exports, which grew by a healthy 75 per cent to 56,452 units against 32,283 in the corresponding month, helped the company recover some of the losses in the domestic market.