Note: All the figures are SIAM-sourced official numbers
We all know how things are skewed towards the 100cc for Hero MotoCorp, which is the world’s largest motorcycle seller in terms of volumes. But a big worry for the company is – their reducing share in anything which is greater than 100-110cc in terms of displacement. Let us tell you how are things going for this mass brand segmentwise…
- 100-110cc Segment: Including scooters, Hero registered sales increment of about 4 Lakh 2-wheelers which is an increase of over seven percent as compared to last financial year sales. Independently, Scooters registered 8.2 percent sales increment whereas motorcycles recorded 7.0 percent higher sales
- 125cc Segment: Even in the 125cc motorcycle segment, Hero is loosing out to Honda. They sold about 60,000 lesser motorcycles in this segment, resulting in a decrement of over 8 percent. Clearly, Shine is eating into their Glamours!
- 150cc Segment: Despite launching newer refreshes and the presence of four models, Hero could not find as many customers. As compared to last financial year, Hero sold over 10 percent lesser 150ccs which is about 10,000 units. It will not be a pleasing fact but Hero is now the lowest 150cc motorcycle seller for the last many months!
- 200 and higher cc Segment: With the new more powerful Karizma twins on offer, Hero lost a whooping 41 percent market share and gave away over 10,000 units to the competition (read Pulsar 220!). If they do not act fast, at this pace, they may go extinct in this segment in some years…
Though they ended the overall year in green, but the ever increasing dependence on 100-110ccs may not go down very well in the longer run, specially when arch-rival Honda is attacking them in this very segment.
Further, the transition from current Honda’s engines to their (Hero’s) own indigenous ones is bound to take more customers away from them. And since the tag of ‘reliability’ needs to be re-initiated, it may take years for Hero to build the same rapport and image!
Hero’s April 2015 Sales
If we talk about April 2015, the first month of the new financial year, things have not really started well for the company. They registered sales fall in every segment, including 100-110ccs. The only green you see there for the >200cc motorcycles is possibly because they stopped production of the older Karizma twins and hence only double digit sales.
However, let us accept that its not easy when your technical partner for so many years, which did not allow you to set-up your own R&D, goes out. On the brighter side, Hero is preparing tons of products which also include some real exciting ones in the form of HX250R, Diesel RNT, Hastur and some regular new motorcycles and scooters. Hero is a cash-rich company and we know it will not fall down easily, but there will be a dip, for sure…