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Can Bajaj overtake Hero Honda in 2007? Will India see a new leader in the two wheeler market in 2007? Will Hero Honda, the market leader for over a decade and a
is the largest passenger vehicle company, Tata Motors is the largest commercial vehicle company while Hero Honda is the largest motorcycle company in India. Other
Submitted by Allwin on July 11, 2008
Category: Business
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Will India see a new leader in the two wheeler market in 2007? Will Hero Honda, the market leader for over a decade and a half, finally have to give way to Bajaj Auto? These are the some of the questions facing the industry as the battle lines for supremacy in the two-wheeler market are being drawn right now.
The Bajajs are inching too close to the Munjals of Hero Honda for comfort. According to the monthly sales data released in September, the once insuperable Hero Honda posted a 15.3% decline in sales in August 2006 to 2,08,576 units as against 2,46,304 units in August, 2005. In comparison, Bajaj Auto’s sales during the month increased 20.9% to 1,80,570 units (1,49,415 units in August 2005). The gap between the two in monthly units sold was as narrow as 28,006 units in August, as against a gap of over 1 lakh units per month on an average.
During the month, Hero Honda’s market share declined by 9.9%, while Bajaj Auto’s increased by 4.5%. In fiscal 2006-07, Bajaj Auto has posted a 3.6% increase in year-to-date sales as compared to a decline of 7% for Hero Honda. Year-to-date, the Bajaj Auto scrip has risen 45%, compared to a 9% decline of Hero Honda. Bajaj Auto chairman Rahul Bajaj has already sounded the bugle saying his company was aiming for the number one slot in two-wheelers.
“The performance of entry level bikes as far as Bajaj Auto is concerned (CT-100) is really good. Besides, drop in prices of various models along with the huge success of the Pulsar model has helped the company to garner extra market share,” says a Mumbai-based analyst, citing reasons for the recent performances for Bajaj Auto.
Hero Honda, though, is expected to make a comeback in September as Bajaj Auto went through a plant shutdown. “The shutdown has impacted its sales for the month and Honda is most likely to make a comeback when the figures for next month are out,” the analyst...
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