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The first of the five days of Diwali, Dhanteras is traditionally considered an auspicious day to buy new assets especially, gold and silver, as well as automobiles. This year, it was celebrated on Tuesday.
Both the companies reported robust growth in consumer demand. Honda scooters, especially, Activa remained the top choice for customers. Honda Motorcycle and Scooter India (HMSI), the 100 per cent subsidiary of Honda Motor Company, Japan, reported retail sales of 1,65,000 units on Tuesday, marking a growth of 110 per cent over Dhanteras last year, when it sold 78,500 units.
Its rival and market leader, Hero MotoCorp, announced that it expected to have sold close to 1,50,000 units on the same day, posting a growth of around 40-50 per cent compared to Dhanteras last year.
Honda has repeatedly challenged Hero's dominance in the domestic two-wheeler market. After strengthening its scooter presence Honda has made rapid in-roads in Hero's forte which lies in the economy bike segment (100-110cc).
On earlier accounts Honda's highest selling two-wheeler Activa trumped Hero MotoCorp's Splendor, its largest selling product. Prior to its new plant in Rajasthan coming on stream Honda was struggling to meet the demand for the Activa with waiting periods extending to beyond six months.
Both companies, who were former partners, announced expansion plans few days ago. While Hero said it will put up two more plants in Gujarat and Andhra Pradesh while inaugurating a new plant in Rajasthan Honda laid the foundation laying stone at its scooter-only plant in Gujarat.
