Japanese-two wheeler manufacturer Honda Motorcycles and Scooters (HMSI) in April overtook Bajaj Auto in terms of selling second largest number of motorcycles in the domestic market. As known, Hero MotoCorp is the largest seller of motorcycles in the domestic market. In April HMSI’s motorcycle volumes increased by 22% to 183,266 units and this is highest wholesale dispatches that the company ever made in India. Bajaj Auto’s domestic volumes during the period decreased by 19% y-o-y to 161,930 units due to heavy pre-buying in March and the BS-IV inventory with dealers almost remaining intact.
HMSI is the leader in the scooter segment with a market share of 57% due to the ever increasing demand for its products like Activa, Dio and Aviator and in overall volumes the company is the second largest manufacturer of two wheelers. HMSI has been maintaining a 14% market share in the past two fiscal years and and this year it expects to increase the share by launching two new motorcycles. According to Y S Guleria almost 55% of the the volumes come from CB Shine and the company is hopeful of sustaining the growth in the motorcycle segment by spreading its network in the Tier 3 cities and beyond.
Honda has been an exception in the domestic market since most of the motorcycle manufacturers – Bajaj and Hero – saw substantial decline in volumes due to high inventory with dealers after the huge pre-buying of BS-III vehicles after the Supreme Court order banning sale of BS-III vehicles from April.
Hero MotoCorp’s volumes declined by 3.5% y-o-y while Bajaj’s wholesale dispatches dipped by 19% y-o-y in April. Honda started to push the BS-IV vehicles with the Activa 125 and CB Shine SP in the last quarter of the last financial year.
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“The transition was done in line with the market movement of products. We pushed BS-III stocks in the region and with dealers who we thought could liquidate the inventory. Hence there was no pressure on our network,” added Guleria. As of now 33% of the overall volumes of HMSI comes from the motorcycle segment and the company expects to increase it by one percentage point every year.
“We are happy that Livo volumes has grown year-on-year when most of the products in its category has declined. Traditionally volumes of our products take time to find momentum in the market. In the last quarter SB Shine SP volume recovered substantially and we are happy to increase our share with help of our retail financiers,” said Guleria.