Join BikersUnite Submit your own news & stories easily at 'Submit Story' above.
After a neck-and-neck race all through last year, the gap between the number one and number two in the 7 million unit motorcycle market is beginning to widen again. With market leader Hero Honda reestablishing its lead, the gap with arch rival Bajaj is back to more than a lakh units a month.
The gap between Hero Honda and Bajaj Auto has widened to 1.08 lakh units in September this year. Bajaj had reduced the gap with Hero Honda to 37,873 units in September last year, threatening to unseat the latter from the top spot.
Bajaj Auto’s declining sales in eight consecutive months, especially in the volume generating 100cc segment, has led to the increase in the gap between the two top players. BAL’s 100 cc models Platina and CT 100 formed more than 50% of its combined sales which has now dropped to around 30%. Bajaj Auto’s total two wheeler sales decreased by 21% to 8,35,220 units in the first half of this year against 10,53,585 units last fiscal.
The company blames its 100 cc performance for the decline in volume. “We are banking on our new offering the 125 cc XCD that is expected to overtake the 100 cc and generate huge volumes. We expect to notch up at least 50,000 units of the XCD in October (from 20,000 units in September) and it will eventually help us garner bigger volumes,†said a Bajaj spokesperson.
Hero Honda is betting on its aggressive price strategy to keep its marketshare intact. Of course even Hero Honda has seen volume growth dwindle this year. Although it has managed to stay ahead of Bajaj, its sales have decreased, though marginally. The sales were down 0.27% to 15,22,530 units in the April-September period against 15,26,669 units totted up last year.
Hero Honda’s senior vice-president (sales and marketing) Anil Dua told ET: “Since last September we have launched 11 new products in the domestic market. We refreshed our entire product range and launched several new bikes at regular intervals that helped us gain numbers. Our new 150 cc bike CBZ Xtreme helped double our volume and marketshare in the premium segment (over 150 cc) this year while the 100 cc models like the CD Deluxe which grew by 23% helped us garner larger volumes.â€
Discuss Add this link to... Kill Story
Comments