 "Honda vrooming past Bajaj")
Riding on motorcycle launches over the past two years, Honda Motorcycle and Scooter India (HMSI) has narrowed the gap with Bajaj Auto, which gave up the scooter segment five years ago, to focus exclusively on motorcycles.
In May 2013, domestic volumes of Bajaj Auto stood at 212,129 units, 126,263 units more than that of Honda. This gap, however, shrunk dramatically to 23,563 units this May, according to data by the Society of Indian Automobile Manufacturers. The gap was more than 157,000 units in May 2011. (THE BIKE RACE)
While Honda's new launches, especially in the economy segment, have helped the Japanese brand, weakening demand hit Bajaj the most. In May, for instance, Bajaj Auto sales dropped 17 per cent to 176,277 units, against 212,129 units in May 2013. This is when the motorcycle sector posted growth of 12 per cent.
For HMSI, at least 55 per cent of its volumes come from scooters. The focus for the Delhi-based company, however, will be to expand its presence in the bike segment to target the number one position in the Indian bike market. The company launched Dream Yuga, CB Trigger, CBR Repsol and Dream Neo in the past two years.
Y S Guleria, vice-president (sales and marketing), HMSI said, "Our representation was minimal in the 100-110 cc segment, which will be our focus area. That is one area where we will grow. Also, rural is one area where we are growing rapidly.”
In the rural segment, Honda's economy bikes, retailed under 'Dream' brand, contributes 35-40 per cent to its total motorcycle sales. To up its ante, HMSI will launch its most affordable 110cc bike in a month's time, which will again be under the Dream-series brand.
In the rural segment, Honda's economy bikes, retailed under 'Dream' brand, contributes 35-40 per cent to its total motorcycle sales. To up its ante, HMSI will launch its most affordable 110cc bike in a month's time, which will again be under the Dream-series brand.
Rajiv Bajaj, managing director, Bajaj Auto said: "Our goal is to be a global motorcycle leader. Towards this purpose we continue to pursue motorcycles that represent greater technology and profitability for all global markets, rather than cheap 100cc ones largely for the Indian market. This year we believe India will be one of our markets where we will gain share, and towards this purpose we have a very significant launch in the commuter motorcycle segment this month."
Bajaj Auto sells motorcycles under its flagship brands Pulsar, Discover, Platina and Avenger. Discover, a brand developed to cater to the economy segment, contributes 46% while Pulsar contributes 30% of overall domestic volumes of the company.
Further, HMSI dethroned Bajaj last financial year to emerge as the second biggest producer of two-wheelers in India. HMSI clocked total sales (domestic + export) of 3,722,049 units last year while Bajaj Auto sold 3,422,403 units in the same year. Hero MotoCorp remains in the lead with total sales of 6,245,960 units.