Ever since we started publishing Indian Bike Sales Figure, we have received lots of suggestion for market share report and domestic two wheeler sales. Finally, we have domestic market share report for two wheeler and Motorcycle segment. Market share is reflection of a company’s competiveness in the market. It is an indicator of company’s position in a market. It also plays a psychological role for influencing buyer’s decision.
Domestic Two wheeler Market Share
Domestic two wheeler sales includes all kind of two wheeler sold in a country. As far as domestic two wheeler market share concerns, Hero Moto Corp. has improved its market share from 43.74% during the period April to September 2010 to 45.45% during the April to September 2011 period, which reflects change of 1.71%. The company is able to improve its market share mainly due to capacity expansion it has done during this period. The company has gained market share from Bajaj Auto and TVS motors and Honda Motorcycle and Scooter India ltd. Bajaj Auto’s domestic two wheeler market share reduced from 21.36% during April to September 2010 to 19.84% during April to September 2011, which reflects negative change of 1.52%. The main reason behind losing market share is stagnant sales of Discover in domestic market and lower sales of Pulsar 135 LS.
TVS Motors lost market share of 0.33% during the April to September 2011 period compared to same period last year because of domestic lower sales in motorcycle segment. The company has 14.74% market share which was 15.07% earlier. HMSI lost market share of 0.33% on account of production issue and lower sales of motorcycle, during the period of April to September 2011 compared to same period last year. The company has 13.16% market share which was earlier 13.78%. Yamaha Motors gained market share of 0.39% during the period of April to September 2011 compared to same period last year, mainly due to good sales of SZ series. The company has 2.62% market share which was earlier 2.23% for the same period.
Suzuki Motorcycle gained market share of 0.36% during this period on account of good sales of its Access scooter and capacity expansion. The company has market share of 2.50% which was 2.14% for the same period. Mahindra Two Wheelers lost 0.13% and Royal Enfield gained 0.13% market share during the period of April to September 2011 compared to the same period last year. Mahindra lost market share as HMSI and Suzuki Motorcycle increased production of scooters. It has 1.13% market share which was 1.26% for the same period last year. Royal Enfield gained market share due to capacity expansion. It has 0.56% market share which was earlier 0.43% for the same period. Overall Hero Moto Corp is biggest gainer for while Bajaj Auto was biggest loser domestic two wheeler market share.
Domestic Motorcycle/Step through Market Share
Hero Moto Corp. gained 2.30% market share during the period of April to September 2011 compared to same period last year. The company has 55.74% market share which was earlier 53.44% for the same period last year. This is mainly because of good sales of Splendour, Passion and CD100 in rural area. Bajaj Auto lost market share of 1.76% for this period compared to the same period last year. The company has 26.03% market share which was earlier 27.79% for the same period last year. TVS motors and HMSI lost market share of 0.59% and 0.82% respectively during the period of April to September 2011 compared to same period last year. TVS Motors and HMSI has market share of 6.58% and 6.89% for this period compared to 7.17% and 7.71% for the same period last year. Yamaha Motors, Suzuki Motorcycle and Royal Enfield gained market share of 0.53%, 0.15% and 0.18% respectively during the period of April to September 2011 compared to same period last year. Yamaha Motors has 3.44% which was earlier 2.91%, Suzuki Motorcycle has 0.58% which was 0.43% and Royal Enfield has 0.74% which was 0.56% for the same period last year. Overall, Hero Moto Corp is biggest gainer and Bajaj Auto is biggest loser for this period in motorcycle segment.
Some points to be noted here. Although market share is refection of position, it is less or more tide with profitability of company depending on company’s operating margin. Also the firms overall growth may be higher as we have excluded export figure here. Some companies are very well performing on export front for example Bajaj Auto which has lost market share in domestic market has seen 40% increase in exports. The year 2012 or the fourth quarter of financial year 2011-12 will show you heavy ups and downs in terms of domestic market share on account of new launches and capacity addition by HMSI.
Please provide your suggestions for this post.
-Mahavir Kothari
(Source: SIAM)
