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.
