TVS sales slide, Hero Honda scrapes through

Bajaj Auto sales have dipped by only one per cent in October, the opening month of the third quarter.

The company sold 2,48,307 units of two-wheelers during the month as against 2,51,022 units in October last year.

Buoyed by the success of its newly launched XCD125, sales are coming back on the track for Bajaj, from the double-digit falls it has suffered over the past few months. The company sold 45,000 units of the XCD in October which has spurred it to ramp up production to 75,000 units in November.

Amit Nandi, general manager (marketing) at Bajaj Auto, said, "We are almost on par with sales of the previous comparable months. We are hiking production of XCD this month, which is also one of our most profitable products and hope to be in the positive by November."

The company aims to increase its market share to 60 per cent in the 125cc and above segment in which it currently has a 50 per cent share.

In contrast sales for the country's largest two-wheeler manufacturer Hero Honda grew by a paltry 0.42 per cent at 3,65,022 units in October. Last month, the company launched the 150cc Hunk.

However, the company said that sales were in line with its strategy for aggressive top line growth and increased market share. Hero Honda's plans to refresh its entire product range and back this with aggressive marketing and campaigns.

Meanwhile, Chennai-based TVS Motors continued to post disappointing figures with motorcycle sales declining 26 per cent at 67,752 units last month, as compared with the corresponding month last year. The dip came despite the company launching the Apache RTR and Star City 110 bikes.

TVS is hopeful of a revival in the coming months with the launch of upgrades of Apache and Scooty and the introduction of Flame motorcycle.

"Sales for Bajaj have risen on the back of strong performance by XCD125. Hero Honda sales will pick up in the coming months from the new bike Hunk. TVS is perhaps witnessing a drop in the economy segment, but it can also look to have a good month with its new launches," a Mumbai-based auto analyst said.