In a mixed bag for the country's two-wheeler makers in January, Hero Honda has posted nearly 6 per cent increase in its sales, while Bajaj Auto's vehicle sales plunged 34 per cent.
Hero Honda, which posted a 10-per cent dip in its sales in December 2008, grew by 5.84 per cent to 315,458 units in January as compared to the sales figure for the same month in 2008.
Between April and December, while the entire motorcycle industry’s growth was less than 1 per cent, Hero Honda grew by an impressive 11 per cent.
The company, which derives much of its sales volumes in the 75-100cc segment, benefited from the price cut it effected in January on the back of the excise duty cut.
Its other advantage was the introduction of variants to its best-selling models such as Splendor and Passion in the last quarter.
“The company’s aggressive foray into the rural market, which is a cash down segment, has helped the company’s sales tremendously,” says Vaishali Jajoo, auto analyst at Angel Broking. Currently, the rural sales contribute about 50 per cent to the company’s overall sales. According to the company, its market share currently stands at 56 per cent.
Bajaj Auto, which recently launched the XCD 135 DTSi, sold 110,363 units in January. The company that field brands like the Pulsar and Avenger in the 125 cc and above category, is betting on newer offerings in the high-end motorcycle segment and falling interest rates for a sales recovery this year.
The company's two-wheeler exports increased by 24 per cent to 54,027 units against the same month last year.
Sales of three-wheelers in January dipped by 11 per cent to 21,985 units.
