Autorickshaw sales up on hub and spoke ride.

 Public transportation in satellite towns or the lack of it is driving three wheeler sales in the country.In October 2012,a record 85,814 units of three wheelers were produced in India,economic think tank CMIEs data revealed.

At 85,814 units,three wheeler production witnessed a 10.80% year-on-year increase and a 7.9% increase month-onmonth.For the fiscal 2012-13,(April to October) 4.62 lakh three wheelers were produced,as against 5.18 lakh units during the whole of 2011-12.

With rapid population growth in satellite townships like Gurgaon,Noida,Navi Mumbai,Whitefield and OMR in Chennai,there is absolutely no proper urban transportation system in place in these areas.Therefore the reliance is very heavy on two and three wheelers.This is why we believe the Tata Ace segment (for passenger movement) and three wheelers will do well.Besides,there is a very heavy reliance on smaller vehicles to reach the last mile in the goods transportation segment,which is why there is so much activity in that space, stated Kumar Kandaswami,senior director and country leader-Manufacturing,for Deloitte in India.

Three wheeler sales in cities are a very difficult segment to forecast as it is a heavily controlled segment.
The permit system which is followed across the country makes it difficult to forecast.Trending that segment isnt easy as states suddenly open permits for a few thousand vehicles and shut them.Having said that,three wheelers as a segment are witnessing decent growth, an official at TVS Motor said.TVS three-wheeler sales grew 9% to 4,062 units in October followed with a sale of 5,054 units in November,an 87% increase YoY.While Bajaj Auto recorded a 7% increase in three wheeler sales at 45,566 units.

If you travel out of any big city,the connectivity is only through these three wheelers or shared rickshaws.This is a segment which is growing because of lack of public transportation system,and will continue to grow as public systems will take at least another 10 years to develop, said Abdul Majeed,partner and national automotive leader at PwC.In addition,a key driver for demand is the high fuel prices and low rural income due to poor rains.Whenever people get in to conserving cash,they jump into a shared rickshaw.It is a lot cheaper than your own mode of transport.The third main driver is the role of a three wheeled vehicle as an ultra small commercial vehicle, he added.

Hero offers more dealer dollies

Hero MotoCorp, India’s biggest two-wheeler manufacturer, is offering additional commissions to its dealers across the country in order push sales in the traditionally slack month of December.

The company is offering additional commission of Rs750 per vehicle on incremental sales over December last year.

The scheme, however, has received lukewarm response from the dealers, according to market sources.

“Sales are extremely bad. Forget incremental sales, I don’t think I can even touch the last December’s number,” said a Delhi-based dealer.

The targets are different at different regions. For example, in North the target is 100%, while it is 60-65% in Tamil Nadu.

According to the dealers, margins on Hero MotoCorp are currently the lowest in the industry.

“Rs750 on incremental sales is just too less to encourage any dealer. If they were offering the same amount on the entire sales number then dealers would have found it exciting to work harder,” said the dealer.

According to a source, the company has been trying hard to push inventories in the market.
“Market has fallen drastically in December. It is difficult right now,” said an executive at a two-wheeler maker.

Dealers said the company is concerned about the volumes.

“I will not call it a desperate measure to push inventories but they are concerned about volumes. They have a high base and to keep that kind of production running the company will have to push inventory in the market,” said an industry source.

Hero sold 1.1 million plus two-wheelers in the festive months of October and November. “December usually witnesses sluggish retails as customers tend to postpone their purchases to the new year. Our December plans are, therefore, aimed at sustaining our festival momentum by encouraging retail sales. So we have new advertising campaigns infusing energy into the market,”said a Hero MotoCorp spokesperson.

“In addition, as we often do, we are making our dealers a part of this effort. Accordingly, we are running a short-period dealer incentive scheme. This is on incremental retail sales so as to carry forward the retail momentum of October and November into December. This scheme has nothing to do with our despatches as we entered December at absolutely normal inventory levels,” the spokesperson said.

Enter the commuter Yuga

It’s the commuter bikes, the plain Janes that have really helped most players in the Indian motorcycle space secure and improve market position. Close to 70 per cent of the nine million motorcycles sold last year came from this space. Japanese manufacturer Honda also hopes to rise above its number three spot in the two-wheeler market with commuter bikes.

The Dream Yuga is the first of Honda’s famous ‘Dream’ range of bikes in India. Although mechanically related to the CB Twister, the Dream Yuga’s styling is derived from the understated CB Shine, as a result of which it wears a bland look. The Honda-typical beak-type headlamp and cowl are softened, with a smooth and simple look. Twin-pod instruments sit sheltered behind the cowl. The left pod houses a bold, easily read speedometer, with an odometer nestled in the middle, while the other houses the fuel level indicator and the basic telltale lights. There is no trip meter.

Angular rear-view mirrors on the matte black handlebar look smart. Unlike the more expensive Honda CBR150R, the Dream Yuga thankfully features a pass flash switch, while the high-beam button is push-operated.

The eight-litre fuel tank tapers gently as it swoops back toward the riding seat, with fine horizontal ridges creating light knee recesses. The filler cap is a familiar, chromed Honda unit. Stylish side panels give the Dream Yuga some muscle, their boomerang shape mimicking the CB Shine closely. The rear panels look smart, flowing from the side panels into a big tail lamp. A chunky, cast-alloy pillion grab bar is another attractive touch on the Dream Yuga.

The style factor is significantly upped by this bike’s lower half, where the front fork sliders, smart six-spoke alloy wheels, engine, exhaust system and full chain cover are all finished in black. Overall quality is up to the high standards expected on Honda bikes, and gives the Dream Yuga a built-to-last feel.

The Dream Yuga deploys the same four-stroke, single-cylinder 109cc engine that powers the CB Twister. It uses a single camshaft to operate its two valves, while a carburettor meters fuel. Apart from a twin-pocket air-cooling system, the Dream Yuga engine uses an offset crank and a viscous-type air filter for better efficiency. Honda has tweaked this powerplant in a bid to improve rideability.

The Dream Yuga engine is smooth, delivering a wide spread of power that makes riding the Honda easy. The bottom end offers a smooth, silken response, while throttle inputs in the mid-range are even more rewarding, laced with a hint of sportiness. The Honda remains smooth even high up in its rev range, although revving it up is of little use as the power then trails off very quickly.

The clutch is well-weighted and progressive. Like the Twister, the Dream Yuga also uses a four-speed gearbox, but the shift pattern has been changed to the archaic all-up pattern, with a heel-and-toe shift lever. Gearshifts are fault-free, a light tap being all that is required to switch cogs with a reassuring snick. Well-chosen ratios ally with the torquey engine to make city commuting effortless. The Dream Yuga is flexible enough to pull cleanly from speeds under 30kph in top gear.

It accelerates from a standstill to 60kph in 7.69 seconds and boasts a true 95kph top speed. Honda’s Dream Yuga delivers a true-blue commuter bike experience, using a single downtube frame with its engine bolted in as a stressed member, while the rear swingarm is a rectangular unit. The wheelbase is 1285mm — slightly longer than the Shine — and the Dream Yuga shows off a long, well-padded, wide seat that easily accommodates two hefty adults.

The handlebar is positioned low and comfortably within reach. Good ergonomics make this a comfortable bike for riders of most heights. Telescopic forks and adjustable twin hydraulic shock absorbers at the rear work together and deliver good ride quality. There’s a hint of firmness at low speed that’s evident over light ridges, but the suspension is adept at dealing with big bumps and potholes. It never bottoms out, not even with a heavy rider and pillion.

The Dream Yuga features 80/100 x 18-inch tubeless tyres at both ends on the alloy wheel variants, while the spoke-wheeled Dream Yuga comes with Tuff-Up tubes. The larger 18-inch rims improve the Dream Yuga’s ability to take on poor roads.

The Dream Yuga is light and steers easily at low speeds, without feeling nervy at higher velocities. Around corners, the high-grip MRF tyres and long wheelbase combine to impart a sense of confidence.

The Dream Yuga delivered good results, giving us 58.3kpl in the city and a highway efficiency of 61.8kpl. This is a healthy 60kpl overall, significant considering the Dream Yuga’s decent performance.

The Dream Yuga may not be the most exciting motorcycle to look at in its class, but refined performance, decent comfort and high fuel efficiency combine to create a wholesome commuter experience, quietly impressive and certain to give the competition good reason to sweat.

Honda should have offered a front disc brake, at least as an option, but despite its few niggles, what sets the Dream Yuga up for success is the bankability of the Honda brand and a sensible price tag that doesn’t charge a premium for this.

Royal Salute

A smooth ride and great attention to detail sets the new Thunderbird 500 by Royal Enfield apart from its predecessor

The name Royal Enfield is synonymous to biking and adventure. So much so, that the moment a hardcore enthusiast hears the name Enfield, he tends to immediately have goosebumps. The typical thumping sound is how the bike is recognised the world over, along with a lot of heritage attached to its name. Today, we bring to you an insight into the recently launched Thunderbird 500 and find out if it manages to capture the imagination of an hardcore bike enthusiast or not. Going by its looks, things definitely seem to have been spiked, if you talk about certain design elements in this bike. A distinctive black styling comes as a fresh change along with features such as a new headlight cluster incorporating projector headlamps with LED. Front and rear disc brakes add character as well as functionality to this cruiser. The LED tail lamps further complement the bike. The introduction of the digital LCD display makes the instrument cluster look much better along with two independent trip meters. The new Thunderbird also provides split seats instead of a single seat. According to Royal Enfield, this has been done to provide better storage facility by simply removing the rear seat for those much needed long rides. Speaking of long rides, the seats weren’t that comfortable as one would expect them to be, considering that highway cruising is the main focus. However, within the city, the bike is pretty comfortable to move around on. Though the whole body is in chrome, the engine has a matt finish, which works pretty well for this machine. The 500 cc unit construction engine is a gem, as it feels well refined. The performance figures show that the Royal Enfield Thunderbird produces a maximum power output of 27.2 bhp with 41.3 Nm of torque. The introduction of an electronic fuel injection system works brilliantly, providing it an edge while riding it in the city as well as on the highway. With a 20 litre fuel tank on board, the bike provides a fuel economy of 30 kmpl within the city and 37 kmpl on the highway.

Two-Wheeler Industry Faces Structural Issues

IN YTD FY13, losses in market share of established players in the two wheeler space widened further as relatively new players gained strong market share on the back of successful launch of new products and dealer network expansion. From the list of established players, Hero MotoCorp is worst-hit followed by TVS Motor and Bajaj Auto, as they all lost market share in YTDFY13 to relatively new entrants like Honda Motor and Scooters India, and Suzuki Motorcycle India. HMSI undoubtedly remains a major threat to other players as it gained maximum market share in motorcycle as well as scooter segments. One of the key reasons behind the success of new players is the launch of new products, which have been very well accepted by customers and helped them in gaining strong market share. Apart from launching variants, new players have been aggressive in launching new products, thereby helping them to improve their market share. We believe the domestic two-wheeler industry faces structural issues, given its higher base and intense competition.

And that's how the wheels rolled…

The year belonged to the UV segment. While passenger car sales grew just 1.28% between April and November, UV sales jumped 62%. As far as two-wheelers are concerned, the year saw the rise of HMSI

If last year had been a nightmare for the Indian auto industry, 2012 was more hopes dashed despite over 20 new launches and facelifts. While the year began on a positive note when the industry showcased its best wares at the Delhi Auto Expo, the enthusiasm waned as the year progressed. Policy paralysis, adverse foreign exchange movement and labour unrest gave manufacturers headaches throughout the year, while consumer demand also headed south on the back of slowing economic growth, rising fuel prices and interest rates.

However, there was one segment that saw good news—the utility vehicle (UV) segment. The numbers are explicit evidence—while passenger car sales grew just 1.28% between April and November (to 1.24 million units), UV sales jumped sharply by 62% to 3.57 lakh units. For Mahindra & Mahindra, which saw 95% of sales coming from UVs, 2012 was one big party—M&M’s sales grew 32% between April and November. While increasing production of its flagship model—the XUV500—and updating the age-old Bolero with new looks, M&M reaped the harvest by launching a new entry-level model in September, the Quanto, at R5.82 lakh starting price. Then, in October, it turned the focus on the opposite end of the segment with the launch of the Rexton, the first product from South Korean firm Ssangyong, which M&M had acquired in February 2011.

The growing UV market also gave Renault a chance to finally establish the brand in India, after its first innings where it had started an unsuccessful joint venture with M&M to make the Logan. Renault launched the Duster compact SUV, which made waves in the market by targeting the sizeable chunk of Indian buyers who aspire for a big car with a wide stance, but at an attractive price and driving comfort of a small sedan. The Duster and the Quanto gave birth to an entirely new segment of compact SUVs, where a lot more action is expected over the next 2-3 years—Ford, GM, Maruti, Tata, Honda, Toyota and Hyundai, all are reportedly developing products for this segment.

Market leader Maruti Suzuki launched its first serious UV contender in April this year, the Ertiga MPV. The Ertiga was responsible for keeping Maruti’s sales steady between July and September, when its other mainstays (Swift and Dzire) saw a production halt after labour trouble at the Manesar factory. Available in diesel as well, the Ertiga is not only a success in India, but in Indonesia also where Maruti sends knocked-down kits for assembly. Even Nissan jumped into the MPV fray with the Evalia.

Land Rover launched the new Range Rover, while parent Tata Motors also launched a new product after a long hiatus—the new Safari Storme. Toyota updated the top-selling Innova MPV and Fortuner SUV with new features and revised design, while Mitsubishi launched the Pajero Sport.
Another major shift seen in 2012 was the sharp tilt towards diesel cars and flagging sales of petrol cars that led to high inventory pile-ups and underutilised petrol engine capacities across companies. From about 30% of the market two years ago, the share of diesel variants in new car sales crossed the halfway mark in the middle of this year. In December, it stood at 58% and is set to rise as more carmakers start offering diesel versions—Honda Amaze diesel and Hyundai i10 diesel.

There were significant launches in other segments as well. Maruti Suzuki, which sells two out of every five passenger vehicles in the country, launched the new version of India’s top-selling car, the Alto. A major revision after over a decade, the Alto 800 saw bookings of over 40,000 units within two months, helping pull up flagging petrol car sales. (Hyundai’s Eon saw growth as well.) The Swift Dzire’s diesel variant pushed up volumes after launch in February, while the Ritz saw a face-lifted version being launched later in the year.

Hyundai, however, largely focused on the premium sedan segments with the launch of the new Elantra and Sonata models based on the ‘fluidic sculpture’ design language first seen in the new Verna. In fact, the Elantra has now climbed to the top of the executive segment, though the segment itself is declining. While a new i10 is expected next year, in 2012 Hyundai updated the i20 premium hatch with a design refresh. Renault also boosted its mass segment portfolio further with the launch of the Pulse and the Scala, essentially re-badged Nissan Micra and Sunny, respectively. Tata’s celebrated Nano, unfortunately, remained a nano performer despite revamped versions and new marketing campaigns. While sales were less than half of the 20,000 unit monthly target, there was improvement over last year with a 17% growth in the April-November period.

The world’s largest carmaker Toyota launched the new Camry, while GM made a fresh bet on the mass segment with the Sail U-VA, a replacement for the Aveo U-VA, though sales are yet to pick up.
A third trend to mark 2012 was the increased offering of competitively-priced automatic transmission options in cars—Maruti now offers an auto box in the Dzire, while Honda launched the automatic Brio. Ford also launched a fuel-efficient automatic for the new Fiesta. More automatic options are expected to come soon as buyers in crowded cities demand more comfortable driving solutions to deal with stop-and-go traffic.

In luxury cars, a segment growing fast in India as incomes and aspirations rise, many interesting things happened. While Mercedes pushed segment-starting prices further down with the B-Class sports tourer at R21 lakh, Audi’s new Q3 helped it push Mercedes to the third spot and challenge BMW for the pole. BMW, meanwhile, launched its Mini brand of small, sporty cars, which seems to have caught the imagination of the upwardly mobile with deep pockets.

In the two-wheeler segment, scooter sales pulled up the market with a 20% growth (to 1.94 million) between April and November, while bikes sales remained flat. The year belonged to Honda, which announced plans to commence a third facility (near Bangalore) by early-2013 and add 5-6 more plants by 2020 to take its annual capacity to 10 million units from 2.8 million today. Honda, which broke its partnership with Hero last year and then launched seven products, has its eyes on the top spot by 2020. Market leader Hero MotoCorp got its R&D act together by announcing tie-ups with three technology/design firms in the US and Europe, while Yamaha entered the scooter market with the Ray. TVS made a second attempt at the lucrative 125cc motorcycle segment by launching the Phoenix.

Among the big boys, Royal Enfield moved upmarket with the swanky new Thunderbird, though its ‘Cafe Racer’ is still awaited. Harley-Davidson strengthened its presence in India with local assembly, while its British competitor Triumph started work on its new plant near Bangalore.

Gearless scooters sale in top gear

Slowdown in sales of car and motorcycles has not been able to dent the scooter segment. And betting big on the growing demand for gearless scooters, almost all major two-wheeler companies are lining up new launches and planning capacity increases across respective manufacturing facilities.

With an industry size of around 2.5 lakh units a month, the scooter market, which is dominated by gearless ones (98 per cent market share), is expected to grow at around 35 per cent nationally, which is around 23 per cent in the east, this year. Scooter models command a 2-4 months of waiting in selective markets.

Scooters sales in the domestic market grew 21 per cent in the first six months of the fiscal even as motorcycles declined 0.79 per cent. A growing urban infrastructure and a preference for gearless scooters among women have contributed to rising sales.

 “We had invested around Rs 500 crore in R&D and have plans to launch two new models of gearless scooters in the 150 cc and 100 cc segment in 2013-14,” Amarendra Kumar Verma, zonal manager (East), Mahindra Two Wheelers told The Bengal Post.

At present, the company manufactures scooters from its Pitampur plant in Indore, where it is utilising 25 per cent of its capacity. Mahindra has four scooter models Rodeo, Duro, Flyte and Kine. All the models runs with a 125cc engine, while Kine is a 85cc, gearless scooter.

“The Mahindra Rodeo targets young vibrant women, Duro in a family scooter, which targets the 35-40 age bracket and the Kine targets the first time user,” said Verma.

"We are adding 10,000 scooters to take our monthly capacity to 40,000 by March next year. We have seen consistent expansion in the past two years where demand has simply outstripped out capacities," said Atul Gupta, marketing head, Suzuki Motorcycle.

Honda Motorcycle and Scooter India is said to be working on plans to develop high-power scooters.

"Even as bike sales have slowed, scooters are generating a huge latent demand to keep our expansion plans intact,” said Anil Dua, senior vice-president (marketing & sales) Hero MotoCorp (HMCL). The company has planned to hike its monthly production to over 60,000 units from 40,000 units at its Gurgaon plant.

Two-wheeler maker India Yam­aha Motor, which is betting big on its new gearless scooter Yamaha Ray, has invested Rs 750 crore to expand its installed capacity to 600,000 two-wheelers annually. The new scooter is manufactured at Surajpur plant in Uttar Pradesh.