Local 2-wheeler firms hope to ride on new launches

After overtaking TVS Motor, Honda has its eyes on No 2 player Bajaj FACING intense competition and pressures on market share from Japanese two-wheeler firms, Indian two-wheeler makers are banking on new product launches in a bid to retain their position and boost sales in the current financial year. With Honda, Suzuki and Yamaha aggressively expanding their presence and increasing their sales with glamorous products across segments, Bajaj, TVS Motor and Hero are hoping their upcoming product launches will help their sales gain momentum. An interesting development in the Indian two-wheeler market in FY12 was the Japanese firm Honda scripting a new era by becoming the third-largest two-wheeler firm in India, pushing TVS Motor to the fourth position. Honda Motorcycle sold over 100,000 units more than TVS Motor in 2011-12. Honda’s domestic sales stood at 1,996,320 units against TVS Motor’s sales of 1,895,500 units (including moped sales of 776,866 units). TVS Motor’s sales were higher by 213,000 units in previous financial year. Aided by a host of new products and commissioning of its second plant, Honda boosted its sales and market share during FY12. And now, Honda is threatening to remove Bajaj from its No 2 position as the gap in domestic sales between the two companies narrows. In April this year, Bajaj sold just over 6,700 two-wheelers more than Honda in the Indian market. With Honda claiming strong response for its products, the battle between Honda and Bajaj will intensify in the coming months. Suzuki, which has just entered the mass segment, will be fuelling further competition in the 110cc segment with its Hayate motorcycle. “The 110cc bike segment accounts for about 50 per cent of total motorcycle market with an estimated sales volume of 4.5-5 lakh units a month. We hope to garner five per cent share in the near term,” Anand Thakur, national head-sales, Suzuki Motor India said. Yamaha, which operates in the above 150cc segment in India, is now betting on scooter segment as well. It will be foraying into the segment with the proposed launch of its first scooter for the Indian market around this year’s festive season. It aims to fetch 40 per cent of total sales from scooters in two years. To protect their position from the onslaught of Japanese competition, Bajaj, TVS and Hero are lining up new launches to keep up the sales momentum this year. “Regaining its No 2 position in the two-wheeler segment, Bajaj will now bank on newer variants of Discovers and Pulsars to keep up the pace,” said Sneha Venkatraman, analyst of HDFC Securities. “It has just launched the new Discover 125 Sports Tourer to build on its executive segment market share. While the management expects the new Discover 125 ST, with all new DTSI-i twin spark technology, to help the company maintain its leadership in the 125cc-plus commuter segment, Bajaj also expects to lure more 100cc commuters to the 125cc-plus space. The much awaited, next generation Pulsar 200 NS will hit the roads shortly, beginning with Maharashtra, and followed by other states in July this year,” Venkatraman added.