Showing posts with label Two Wheeler. Show all posts
Showing posts with label Two Wheeler. Show all posts

Saturday, April 4, 2009

Hero Honda contributes climb up in two-wheeler sales

Continuing the positive sales performance seen in February, Hero Honda, the country’s largest manufacturer of motorcycles, posted 10.3 per cent growth in sales for March this year, selling 353,342 units against the 320,574 units sold in the same month last year.

While the entire two-wheeler industry grew by 1.7 per cent for the 11-month period beginning April 2008, Hero Honda grew an impressive 11 per cent.

Analysts say the company, celebrating its 25th anniversary this year, has managed the downturn in the industry in three ways. One is its unparalled rural network, which roughly translates into a rural-urban sales mix of 50:50. Most rural customers make cash-down payments. The second is its bestselling 100cc motorcycle brands like Splendor and Passion, the largest selling models in the category. This segment contributes over 60 per cent to the company’s sales. The third is the brand equity of Hero Honda.

Chennai-based TVS Motors posted 2 per cent growth in March this year, selling 105,648 units as against the 103,975 units it sold in March last year. Honda Motorcycle and Scooter (HMSIL), which makes popular scooter brands like Activa and Dio, recorded 2.4 per cent growth in March, selling 81,865 units of motorcycles, scooters and CKDs. The figure includes domestic sales and exports.

“Once the RBI’s repossession norms are finalised, repossession of vehicles in case of loan defaults will become easier. Then, financiers, especially those from non-banking finance companies and private banks, will come back to the market to lend,” said Venu Srinivasan, CMD, TVS Motors. Srinivasan had earlier said that sales of two-wheelers depended on the cost and availability of funds.

Recovery could also come from the slew of new models that are in the pipeline. In addition to launching its bestselling XCD 135 this year, Pune-based Bajaj Auto plans to launch four brand refreshes and two new models in the high-power category. Others like Honda, TVS Motor and Hero Honda also plan to launch either newer versions of existing models or new models in 2009.

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Tuesday, March 31, 2009

Mahindra and Mahindra : A New Scooter Segment

To take on Hero Honda, Bajaj Auto, Honda Motorcycles and Scooters India. Almost a year after India’s premier tractor and utility vehicles maker, Mahindra & Mahindra (M&M), announced the acquisition of Kinetic Motors, it has put up a blueprint to enter every key segment of the two-wheeler market.

The Mumbai-based company will take on Hero Honda, Bajaj Auto and Honda Motorcycles and Scooters India (HMSI) and will have models in the 100cc, 125cc and 150cc mobike segments, and also in the ungeared low and high-powered scooter segments.

Hero Honda has a 60 per cent share of the motorcycle segment, while HMSI commands 58 per cent of the scooter market.

At a press conference, Anand Mahindra, vice-chairman and managing director, M&M, said: “Our two-wheeler project is complete; we have already begun marketing the fleet in Bangalore .” When asked what two-wheeler products will roll out, Mahindra replied, “You will be able to see it soon.”

The company is planning to leverage the research and development (R&D) strength of Engines Engineering Srl, an Italian engine and design company it bought last year. The company specialises in developing small yet powerful and fuel-efficient engines for motorcycles. The idea is to establish M&M in the two-wheeler segment through transfer of technical knowhow.

In addition, SYM, the Taiwanese two-wheeler company, which has agreed to extend its tie-up to M&M after the Kinetic takeover, will also help provide technology, perhaps more for the gearless scooters segment.

“Our ultimate goal is to be in every segment of the two-wheeler industry and this will be achieved through the strong R&D support M&M currently has. We want to be in the big engine segment of motorcycles, as well as in the smaller entry-level scooters”, said a source from Mahindra Two Wheelers.

The company is reportedly developing a 650cc-750cc petrol-fired engine with the help of the Italian company. However, it has refused to give details.

M&M currently sells only a gearless scooter called Flyte. This product, originally built by SYM, has been altered by M&M to suit the Indian consumer. Its sales have more than doubled after the Kinetic takeover. M&M currently sells 3,500-4,500 units of the scooter a month, as against the 1,500-2,000 units sold earlier. According to sources, demand for the scooter has been growing 50-70 per cent every month, mainly on account of improved marketing techniques.

Freshly developed products by the company may see co-branding of Mahindra Kinetic, as both companies enjoy a strong brand value.

M&M had earlier bought the business assets of the then loss-making Kinetic Motor Co, run by the Pune-based Firodia family, for Rs 110 crore. M&M holds 80 per cent in the new entity, while the balance is held by Kinetic. Now all we are eagerly waiting for new segment of scooters from M&M.

Related Articles : Wheel Industry
01. Honda : What Next

02. Mahindra's Beautiful Dream XYLO running on the road