Hero Honda: Hero Honda the world’s no. 1 two wheeler company has posted growth of 10.50% in the month of November 2010 compared to November 2009. The company has sold 4,21,366 units of two wheeler in the month of November 2010 compared to 3,81,378 units of two wheeler sold in the month of November 2010.
This is the seventh consecutive month where Hero Honda has sold more than 4 lakh units. However, on the month on month basis the sale is down by 16.65%. The company has sold 5,05,553 units in the month of October 2010 which is highest ever in the company history. This is a seasonal trend as the festive season get over. Hero Honda has sold 34,46,902 units during April 2010 to November 2010 period up 13.46% compared to 30,37,756 units sold in the same period last year.
Anil Dua, senior vice-president (marketing & sales), Hero Honda Motors, said “The four-lakh plus sales consistently recorded over the past seven months has imparted an excellent momentum to our sales for the rest of the year. It has been an all-round contribution from all the segments towards our growth — entry, deluxe as well as premium and also from the scooter segment. With unrelenting market demand for our products, we anticipate maintaining this buoyancy.”
It seems like Hero Honda will consistently post 4 lakh plus figure in the upcoming months. The above no. also tells the story that the company’s market share is now stabilizing. Before the month of October Hero Honda was continuously losing market share to competition.
Bajaj Auto
Bajaj Auto country’s second largest two wheeler maker of India, has reported growth of mere 9.34% in the month of November 2010. This is the first time in the financial year that company has posted single digit growth in motorcycle sales. The company has sold 2,65,036 units of motorcycle in the month of November 2010 compared to 2,42,390 units in the month of November 2009. The company has also lost on export front due to logistic constraints. The company exported 90,869 units in the month of November 2010 down by 7.77% compared to 98,521 units in the month of November 2009. However on the domestic front the company has reported growth of 19% in motorcycle segment compared to last year.
On the month on month basis the company sales is down by 19.63% compared to 3,29,776 units in the month of October 2010 due to end of festive season. The company’s total sales stood at 2,99,231 units in the month of November 2010 up 8.12% compared to 2,76,759 units in the month of November 2009. The company has sold 23,06,697 units of motorcycle during the period of April to November 2010 up 46.51% compared to 15,74,439 units sold in the same period last year. The company’s export stood at 8,32,487 units during the period of April to November 2010 up 42.26% compared to 5,85,162 units sold in the same period. Pulsar and Discover sales stood at 83,146 units and 1,01,033 units registering growth of 66% and 7% respectively.
It seems like Bajaj auto’s pace will slow down for the rest of financial year mainly due to two reasons. First the company is not going to launch any new model for the mass segment in the rest of financial year. Second the high base effect will start showing lower growth rate. The company has set goal of 4 million units for this financial year including export and three wheeler out of which it has done 2.6 million units till now.
TVS Motors
TVS Motors has posted growth of 27.31% in the month of November 2010. The company has sold 1,53,882 units in the month of November 2010 compared to 1,20,844 units sold in the month of November 2009. Total sales stood at 1,57,041 units in the month of November 2010 up by 28.78% compared to 1,21,945 units sold in the same period last year. On the month on basis the company has reported drop of 19.78% due to end of festive season. The company has sold 1,91,822 units of two wheeler in the month of October 2010. Cumulative two wheelers sales for the period of April to November 2010 stood at 13,16,743 units of two wheelers up by 33.09% compared to 9,89,353 units of two wheeler sold in the same period last year.
Domestic sales stood at 1,39,541 units in the month of November 2010 up by 30.61% compared to 1,06,836 units sold in the month of November 2009. The company sold 36,223 units of scooter in the month of November 2010 up by 44.26% compared to 25,115 units of scooter sold in the month of November 2009. Motorcycle sales stood at 62,995 units in the month of November 2010 up by 39.74% compared to 25,115 units sold in the month of November 2009.
TVS Motors has set a target of selling 2 million units in this fiscal year. If the growth rate will continue for remaining months the company may sell 2.1 or 2.2 million units in this fiscal which is 1 or 2 lakh units more than what it has targeted for the whole year.
HMSI
India’s largest scooter manufacturing company Honda Motorcycle & Scooter India Ltd reported growth of 14.22% in the month of November 2010. The company reported sales of 1,29,627 units in the month of November 2010 compared to 1,13,489 units in the November 2009. On month on month basis the company’s sales is down by 12.92% due to end of festive season. The company sold 1,48,861 units in the month of October 2010. The company sold 10,88,119 units during the period April 2010 to November 2010 up by 42.23 % compared to 7,65,064 units sold during the same period last year.
HMSI Operating Head (Sales and Marketing) NK Rattan said, “The latent demand for scooter was always there because of its utility value; it was a question of bringing the right product. When the scooter market was down, it needed a leader to revive the segment”. He added, “By catering to different segments and by introducing new products and continuously upgrading them, we have played the role of leader in reviving the scooter market.”
HMSI is growing at very fast rate but the sales are constrained by capacity. To overcome capacity constraint the company has proposed a third plant in Andhra Pradesh. The company is also heavily investing in expanding its dealer base as the company is planning to sold its stake in Hero Honda. The company is also planning to launch its new 250cc bike CBR250R from April 2010.
Yamaha India
Yamaha India has reported sales growth of 23.21% in the month of November 2010 compared to November 2009 on the back of new launches like SZ and SZ-X. Total sales stood at 30,310 units in the month of November 2010 compared to 24,600 units last year in the same period. The company reported month on month basis sales drop of 18.63%. The company sold 37,251 units in the October 2010.
Domestic sales stood at 22,710 units in the month of November 2010 up by 33.16% compared to 17,055 units in the month of November 2009. Export stood at 7,600 units in the month of November 2010 up by 0.73% compared to 7,545 units in the month of November 2009. The company sold 2,39,831 units during April to November 2010 period up by 25.26% compared to 1,91,468 units during the same period last year.
Expressing happiness over Yamaha’s continued strong performance in India, Mr. H. Suzuki, the new CEO & Managing Director, India Yamaha Motor said, “We are glad that our sales have maintained a consistent growth trend. Our premium segment bikes such as FZ series and YZF-R15 are doing very well. Our powerful commuter SZ bike and entry level YBR 125 and YBR 110 bikes also continue to grow at a brisk pace which shows that we have been able to meet the customers’ expectations with a strong product portfolio. We expect our strong showing to continue in the coming months.”
Yamaha India wants to establish itself as a global brand among the Indian consumers. The company is doing it by conducting various marketing activities such as Yamaha R15 One Make Race, Yamaha Safe Riding Science (YSRS) for college students & kids.
Suzuki Motorcycle
With the success of Suzuki Slingshot Suzuki Motorcycle India reported massive growth of 76.75% in the month of November 2010 compared to November 2009. The company’s total sales stood at 25,439 units in the month of November 2010 compared to 14,393 units in the month of November 2009. The company has reported flat sales month on month basis.
The company sold 25,439 units in the month of October 2010. Although festive season is over Suzuki motorcycle sales maintained last month no. The company sold 1,71,596 units during April to November 2010 up 55.84% compared to 1,10,110 units in the same period last year.
“We have received very good response from the market to all our products…We are committed to continue this growth momentum in future,” Suzuki Motorcycle India Vice President (Sales and Marketing) Atul Gupta said in a statement.
The company attributed its growth to the good response from its motorcycle GS150R, scooter Access125 and mostly the newly launched bike SlingShot.
Mahindra Two wheelers
World’s fastest growing two wheeler company Mahindra two wheeler reported growth of 126% in the month of November 2010 compared to November 2009. Total sales stood at 15,854 units in the month of November 2010 compared to 7,020 units in the month of November 2009. The scooter sales stood at 14,148 units in the month of November 2010 up by 101.54% compared to 7,020 units in the month of November 2009. In the motorcycle segment Mahindra Sattalio reported sales of 1,706 units in the month of November 2010. Month on Month basis the company has reported sales drop of 25.23%. The company sold 21,204 units last month. Total cumulative sales from April to November 2010 stood at 107,888 units up by 262% compared to 29,778 units for the same period last year.
“Consumers have reposed their trust in the Mahindra two-wheeler brand and this is borne out from the momentum that is reflected in our monthly sales figures. We are currently in the process of ramping-up production to meet demand,” Mahindra & Mahindra”s President (Two-Wheeler sector) Anoop Mathur said.
It seems like Mahindra two wheeler will continuously post higher sales growth till the end of this financial year.
Summary
The Indian two wheeler industry’s growth rate remains intact. The period April to November 2010 has witnessed growth of 29.56% over the same period last year. More than 8.67 million units of two wheelers sold during the period of April to November 2010 compared to 6.69 million units in the same period last year. Although, November 2010 sales is down compare to total sales of October 2010 the growth rate remain intact compare to November 2009. Hero Honda the market leader has sold more than 3.4 million units in the current financial year.
Bajaj Auto the second largest manufacturer of two wheelers has sold more than 2.3 million units. TVS Motors has sold more than 1.3 million units whereas HMSI sales has crossed 1 million mark with the sales of 1.08 million units during April to November 2010 period. Yamaha India, Suzuki Motorcycle and Mahindra two wheelers sold 0.23 million, 0.17 million and 0.10 million units respectively during the period of April to November 2010.
– Mahavir Kothari
