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Hero Honda: Hero Honda the world’s no. 1 two wheeler company has posted massive growth of 33.33% in the month of December 2010 compared to December 2009. The company has sold 5,01,111 units of two wheeler in the month of December 2010 compared to 3,75,838 units of two wheeler sold in the month of December 2009. This is the second month in this financial year where company has posted sales of more than 5 lakh units. This is the Eighth consecutive month where Hero Honda has sold more than 4 lakh units. Sale is also up by 18.93% on the month on month basis. The company has sold 4,21,366 units in the month of November 2010. The nos. are really surprising and much more than market expectation. Hero Honda has sold 39,48,013 units during April 2010 to December 2010 period up 15.65% compared to 34,13,594 units sold in the same period last year. The October to December 2010 quarter made history in the company by posting sales figure of 14,28,030 units up by 28.49% compared to 11,11,372 units in the same period last year. Anil Dua, senoir VP (Marketing & Sales), Hero Honda Motors, said, “2010 has been an outstanding year for Hero Honda. The year 2010 not only witnessed sales of over 5 million units but the company also consistently raised the bar and created new records. A double digit growth rate despite the large base of previous year is the reflection of confidence and trust that our customers and business partners repose in us. For the coming year, we further intend to solidify our leadership by launching new products combined with customer-focused marketing programs.” It seems like the company will continuously post higher sales will remain on no.1 position regardless of competition. Bajaj Auto: Bajaj Auto country’s second largest two wheeler maker of India, has reported growth of mere 10.80% in the month of December 2010. The company has sold 2,43,675 units of motorcycle in the month of December 2010 compared to 2,19,920 units in the month of December 2009. The company has posted single digit growth in export this month after posting declining sales last month. The company exported 95,388 units in the month of December 2010 up by 4.40% compared to 91,369 units in the month of December 2009. On the month on month basis the company’s sales is down by 8.06% compared to 2,65,036 units in the month of November 2010 due to year end. The company’s total sales stood at 2,76,803 units in the month of December 2010 up by 9.84% compared to 2,52,004 units in the month of December 2009. The company has sold 25,50,372 units of motorcycle during the period of April to December 2010 up 42.13% compared to17,94,359 units sold in the same period last year. The company’s export stood at 9,27,875 units during the period of April to December 2010 up 37.15% compared to 6,76,531 units sold in the same period. Pulsar and Discover sales stood close to 70% of total motorcycle sales. As mentioned in the previous month sales report the higher base effect has started showing its effect. Other reason includes no scooter in portfolio which is benefiting TVS Motors and Hero Honda by posting almost double sales compared to previous year. The company has set goal of 4 million units for this financial year including export and three wheelers. It seems like it will over achieve 1 million units of export but will miss target of overall sales of 4 million units. TVS Motors: TVS Motors has posted growth of 40.65% in the month of December 2010. The company has sold 1,68,359 units in the month of December 2010 compared to 1,19,701 units sold in the month of December 2009. Total sales stood at 1,71,790 units in the month of December 2010 up by 42.07% compared to 1,20,913 units sold in the same period last year. On the month on basis the company has reported growth of 9.41% due to higher demand. The company has sold 1,53,822 units of two wheeler in the month of November 2010. Cumulative two wheelers sales for the period of April to December 2010 stood at 14,85,102 units of two wheelers up by 33.90% compared to 11,09,054 units of two wheeler sold in the same period last year. Domestic sales stood at 1,49,357 units in the month of December 2010 up by 45.74% compared to 1,02,479 units sold in the month of December 2009. Export stood at 19,002 units in the month of December 2010 up by 10.34% compared to 17,222 units sold in December 2009. The company sold 41,804 units of scooter in the month of December 2010 up by 93.84% compared to 21,566 units of scooter sold in the month of December 2009. Motorcycle sales stood at 61,414 units in the month of December 2010 up by 23.92% compared to 49,560 units sold in the month of December 2009. TVS Motors has posted highest growth among top three players which includes Bajaj Auto and Hero Honda. The main reason behind posting higher sales is higher sales growth in Scooter segment where HMSI is losing market share due to capacity constraint. HMSI: India’s largest scooter manufacturing company Honda Motorcycle & Scooter India Ltd reported growth of 20.00% in the month of December 2010. The company reported sales of 1,40,642 units in the month of December 2010 compared to 1,17,200 units in the December 2009. On month on month basis the company’s sales is up by 8.50 % due to higher demand of its 110cc CB Twister bike. The company sold 1,26,627 units in the month of November 2010. The company sold 12,28,761 units during the period April 2010 to December 2010 up by 42.23 % compared to 8,82,264 units sold during the same period last year. The company sold 1,30,084 units in the domestic market in the month of December 2010. The company exported 10,558 units in the month of December 2010. Domestic sales of 1,30,084 units include sales of 53,821 units of motorcycle and 76,263 units of scooters. The motorcycle segment is growing at very fast pace. Demand for HMSI product is very high but the sales is constrained by capacity. To overcome capacity constraint the company has proposed a third plant in Andhra Pradesh. The company has started taking bookings of Honda CBR250R. The bike is priced Rs. 1,50,000 Ex-showroom and initial booking amount is Rs. 5,000. Beside this the company is also planning to enter into pre owned two wheeler markets. Yamaha India: Yamaha India has reported sales growth of 69.71% in the month of December 2010 compared to December 2009 on the back of new launches like SZ-R. Total sales stood at 34,839 units in the month of December 2010 compared to 20,529 units last year in the same period. The company reported month on month basis sales growth of 14.94%. The company sold 30,310 units in the November 2010. Domestic sales stood at 26,567 units in the month of December 2010 up by 95.17% compared to 13,612 units in the month of December 2009. Export stood at 8,272 units in the month of December 2010 up by 19.59% compared to 6,917 units in the month of December 2009. The company sold 2,74,670 units during April to December 2010 period up by 29.56% compared to 2,11,997 units during the same period last year. For the entire year 2010 the company sold 3,50,264 units up by 30.75% compared to 2,67,895 units sold in the year 2009. The domestic sales stood at 2,58,987 in the year 2010 up by 18.46% compared to 2,18,987 units in the year 2009. Exports stood at 91,277 units in the year 2010 up by 85.26% compared to 49,270 units in the year 2009. India Yamaha Motor CEO and Managing Director Hiroyuki Suzuki said “We are pleased with our achievements this year, wherein we have been able to strengthen our brand image and cement our place in the hearts of our esteemed customers. The company is confident that 2011 will also be a successful year on the back of strong performance in 2010.” 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 R15One Make Race, Yamaha Safe Riding Science (YSRS) for college students & kids. Suzuki Motorcycle: Suzuki Motorcycle India reported massive growth of 77.59% in the month of December 2010 compared to December 2009. The company’s total sales stood at 25,837 units in the month of December 2010 compared to 14,549 units in the month of December 2009. The company has reported almost flat sales month on month basis. The company sold 25,439 units in the month of November 2010. This is consecutive 3rd month where we are seeing flat sales which mean the production plant is running on optimum capacity. The company sold 1,97,433 units during April to December 2010 up 55.37% compared to 1,24,659 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 82.59% in the month of December 2010 compared to December 2009. Total sales stood at 14,971 units in the month of December 2010 compared to 8,199 units in the month of December 2009. The scooter sales stood at 14,715 units in the month of December 2010 up by 79.47% compared to 8,199 units in the month of December 2009. In the motorcycle segment Mahindra Sattalio reported sales of just 256 units in the month of December 2010 which is quite low compared to two previous monthly sales. Month on Month basis the company has reported sales drop of 5.57%. The company sold 15,854 units last month. Total cumulative sales from April to December 2010 stood at 122,859 units up by 224% compared to 37,997 units for the same period last year. The Oct-December 2010 quarter also reported sales of 4626 units of motorcycles. It seems like Mahindra two wheelers is getting advantage of scooter boom but motorcycle segment is not doing well. The company is conducting The Mahindra Stallio Great Indian Ride, where 20 bikers successfully rode the Stallio for 38 days over 1,35,000 km across the length and breadth of India converged recently at Nagpur. Four teams of 5 bikers each astride the Stallio started from the four corners of India, culminating at Nagpur which is the centre of India. This proves that here is one more reliable vehicle from the Mahindra stable. Summary: The Indian two wheeler industry’s growth rate remains intact. The period April to December 2010 has witnessed growth of 29.48% over the same period last year. More than 9.80 million units of two wheelers sold during the period of April to December 2010 compared to 7.57 million units in the same period last year. The highlight for this month was Hero Honda’s sales of more than 5 lakh units. With the figure of 5 lakh plus monthly sales Hero Honda the market leader is now close to 4 million units sales in the current financial year. It has already sold 3.95 million units. Bajaj Auto the second largest manufacturer of two wheelers has sold more than 2.5 million units. TVS Motors has sold more than 1.48 million units whereas HMSI sales stood at 1.22 million units during April to December 2010 period. Yamaha India, Suzuki Motorcycle and Mahindra two wheelers sold 0.27 million, 0.19 million and 0.12 million units respectively during the period of April to December 2010. - Mahavir Kothari

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