Hero Honda the world’s no. 1 two wheeler company has posted growth of 24.41% in the month of March 2011 compared to March 2010. The company has sold 5,15,852 units of two wheeler in the month of March 2011 compared to 4,14,638 units of two wheeler sold in the month of March 2010. This is by far company’s highest ever sales in current financial year. The previous highest ever sales of 5,05,553 units in October 2010.
This is the eleventh consecutive month where Hero Honda has sold more than 4 lakh units and the third time more than 5 lakh plus sale in the current financial year. On the month on month basis the sale is up by 9.28%. The company sold 4,72,055 units in the month of February 2011. Hero Honda has sold 54,02,444 units during April 2010 to March 2011 period up 17.44% compared to 46,00,130 units sold in the same period last year.
Hero Honda Motors Managing Director and CEO Pawan Munjal said “We are delighted with this year’s sales performance, far surpassing our initial guidance of 5 million. Our growth rate is reflective of our strategic and marketing prowess, which has ensured our sustained market leadership.”
He also said “Hero Honda initiated strategic and structural changes this fiscal, which will begin to take effect in the near future. We are confident that our initiatives will allow us to build on our leadership position. We will actively look at exploring opportunities in newer markets, establishing a new brand identity and further enhancing our in-house resources”
The company is in final stage for the announcement of 4th plant. Currently company’s three operational plants have 5.6 million units capacity. The company is running at its optimum capacity to satisfied demand. As expected the company’s has started selling 5 lakh plus units from this month. In this financial year the company bought Honda Motor Corporation’s 26% for Rs. 3,841.83 crore. During this fiscal, the company has launched seven new models including variants and refreshes, across various segments.
Bajaj Auto
Country’s second largest two wheeler maker, Bajaj Auto has reported growth of 12.05 % in the month of Mrach 2011.This is by far company’s highest ever monthly sales for March month. The company has sold 2,74,389 units of motorcycle in the month of March 2011 compared to 2,44,870 units in the month of March 2010. The company exported 69,844 units in the month of March 2011 up by 7.23% compared to 65,134 units in the month of March 2010. It is to be noted that there were32,000 units were treated as vehicle in transit, Hence they are not considered as export even the company sold these units.
On the month on month basis sales is down by 4.28%. The company sold 2,86,657 units in the month of February 2011. The company’s total sales stood at 3,07,738 units in the month of March 2011 up by 12.20% compared to 2,74,277 units in the month of March 2010. The company has sold 33,87,040 units of motorcycle during the period of April 2010 to March 2011 up 35.12% compared to 25,06,749 units sold in the same period last year. The company’s export stood at 12,03,718 units during the period of April to March 2011 up 35.10% compared to 8,91,002 units sold in the same period last year. Pulsar and Discover combined sales stood at 71 % of overall motorcycle sales of March 2011.
By far this is the record year for Bajaj Auto as far its Motorcycle sales is concerned. The company added almost 900,000 units of motorcycle compared to last year which is highest in the Indian two wheeler industry. The company is aiming to sale 4.6 million units in next financial year with 4.1 million units of motorcycle. The company has sold close to 900,000 pulsars and more than 1.35 million units of Discover. The company is aiming to sale over a million units of Pulsars and 1.7 million units of Discover in the financial year 2011-12. The company will also re-launch Boxer which will contribute close to 300,000 units for the financial year 2011-12. The company has recently launched Discover 125cc in order to achieve above sales target for Discover.
TVS Motors
TVS Motors has posted growth of 27.27% in the month of March 2011. The company has sold 1,86,781 units in the month of March 2011 compared to 1,46,763 units sold in the month of March 2010. Total sales stood at 1,91,208 units in the month of March 2011 up by 28.16% compared to 1,49,194 units sold in the same period last year. On the month on basis the company has reported sales growth of 7.84%. The company has sold 1,73,200 units of two wheeler in the month of February 2011. Cumulative two wheelers sales for the period of April 2010 to March 2011 stood at 20,06,808 units of two wheelers up by 31.86% compared to 15,21,939 units of two wheeler sold in the same period last year.
Domestic sales stood at 1,62,719 units in the month of March2011 up by 28.43% compared to 1,26,696 units sold in the month of March 2010. Export stood at 26,979 units in the month of March 2011 up by 31.06% compared to 20,585 units sold in March 2010. The company sold 42,655 units of scooter in the month of March 2011 up by 49.65% compared to 28,504 units of scooter sold in the month of March 2010. Motorcycle sales stood at 79,642 units in the month of March 2011 up by 24.16% compared to 64,147 units sold in the month of March 2010. Moped sales stood at 64,484 units in the month of March2011.
This is the robust year for TVS motors as far as three wheeler and scooter sales concern. The company sold more than 2 million units of two wheeler with close to 900,000 motorcycles and 500,000 scooters. It seems that the sales momentum will continue for TVS motors in next financial year as well. Hope to see further higher sales in the financial year 2011-12.
HMSI
India’s largest scooter manufacturing company Honda Motorcycle & Scooter India Ltd reported growth of mere 2.09% in the month of March 2011. The company reported sales of 1,47,301 units in the month of March 2011 compared to 1,44,288 units in the March 2010. On month on month basis the company’s sales is up only by 1.02% as the plants are running on optimum capacity. The company sold 1,45,819 units in the month of February 2011. The company sold 16,56,727 units during the period April 2010 to March 2011 up by 30.31 % compared to 12,71,377 units sold during the same period last year.
Motorcycle sales stood flat at 65,899 units in the month of March 2011 compared to 65,888 units in the month of March 2010. On the other hand Scooter sales grew by 13.21%. The company sold 81,402 units of scooter in the month of March 2011 compared to 78,400 units in the month of March 2010. The company sold 7,48,895 units of motorcycle during April 2010 to March 2011 up by 44.06% compared to 5,19,832 units in the same period last year. The company sold 9,07,832 units of scooters during April 2010 to March 2011 up by 20.80% compared to 7,51,545 units sold in the same period last year.
HMSI is growing at very fast rate but the sales are constrained by capacity. As the company’s second plant in Rajasthan is going to become operational within few months the company will post higher sales.
Yamaha India
Yamaha India has reported sales growth of 33.90% in the month of March 2011 compared to March 2010. Total sales stood at 36,768 units in the month of March 2011 compared to 27,460 units last year in the same period. The company reported month on month basis sales growth of 11.26%. The company sold 33,046 units in the February 2011. Domestic sales stood at 25,784 units up by 44.33% compared to 17,864 units in the month of March 2011. Export stood at 10,984 units in the month of March 2011 up by 14.46% compared to 9,596 units in the month of March 2010. The company sold 3,73,081 units during April 2010 to March 2011 period up by 29.71% compared to 2,87,629 units during the same period last year.
Expressing his happiness over monthly sales figure India Yamaha Motor Chief Executive Officer and MD Mr Hiroyuki Suzuki said “We are delighted to see the high growth momentum in both domestic and export markets which reassure us of the increasing customer confidence towards brand Yamaha,”. The company attributed its growth to models such as YZF-R15, FZ, SZ and YBR series, he added.
Suzuki Motorcycle
Suzuki Motorcycle India reported massive growth of 25.94% in the month of March 2011 compared to March 2010. The company’s total sales stood at 27,361 units in the month of March 2011 compared to 21,725 units in the month of March 2010. The company has reported growth flat of 4.79 % month on month which means the company again started feeling heat of capacity constraint from vendor. The company sold 28,738 units in the month of February2011. The company sold 2,82,140 units during April 2010 to March 2011 up 48.61% compared to 1,89,848 units in the same period last year.
Expressing his happiness on monthly sales figure Suzuki Motorcycle India Vice President (Sales and Marketing) Atul Gupta said “We have received a very good response from the market to all our products including the newly-launched, Suzuki SlingShot series. We are committed to continue this growth momentum in future.”
The company attributed its growth to the good response to its GS150R motorcycle and Access125 scooter, besides the recently launched SlingShot bike.
Mahindra Two Wheelers
Two wheeler company Mahindra two wheeler reported growth of mere 3.85% in the month of March 2011 compared to March 2010. Total sales stood at 12,771 units in the month of March 2011 compared to 12,297 units in the month of March 2010. The scooter sales stood at 12,771 units in the month March 2011 up by 3.85% compared to 12,297 units in the month of March 2010. As the production of Mahindra Sattalio halted the company has not reported any sales for Mahindra Sattalio. Month on Month basis the company has reported flat sales. The company sold 12,682 units last month. Total cumulative sales from April to February 2011 stood at 163,914 units up by 134% compared to 70,008 units for the same period last year.
This has been a year of significant growth for Mahindra Two Wheelers. The business has more than doubled and a landmark consumer base of 2 lakh has been crossed in just 16 months, which makes Mahindra Two Wheelers the fastest growing two wheeler company. Brand building initiatives not only reflect in the growth numbers but also in the accolades won in various foray.
It seems that the company will not be able to report any higher growth rate in upcoming month as the demand for scooter is slowing down compared to previous month. Moreover market leader HMSI is going to set up second plant which will reduce waiting period for Activa. It will affect Mahindra two wheeler the most as the company mostly gain sales due unavailability of Activa. Upcoming months will be very challenging for Mahindra two wheelers.
Summary
The Indian two wheeler industry’s growth rate remains intact. The period April 2010 to March 2011 has witnessed growth of 26.76% over the same period last year. More than 13.25 million units of two wheelers sold during the period of April 2010 to March 2011 compared to 10.45 million units in the same period last year.
Hero Honda the market leader is continuously posting double digit growth after Diwali. It has done 5.4 million units sales in the current financial year. Bajaj Auto the second largest manufacturer of two wheelers has sold close to 3.4 million units in the current financial year.
TVS Motors has sold more than 2.01 million units whereas HMSI sales stood at 1.66 million units during April 2010 to March 2011 period. Yamaha India, Suzuki Motorcycle and Mahindra two wheelers sold 0.37 million, 0.28 million and 0.16 million units respectively during the period of April 2010 to March 2010. Going ahead we will continuously have double digit growth in two wheeler industry despite fuel price hike and rising price of two wheelers as there are several new product launches in pipeline for next 6 month. But the growth rate will come down in next financial year and upcoming months.
