Suzuki Motorcycle India sales jump 44% in June
Two-wheeler maker Suzuki Motorcycle India on Wednesday reported a 44.37% jump in sales to 17,876 units in June, on the back of good response to its new products. The company had sold 12,382 units in June 2009, Suzuki Motorcycle India said in a statement. "We will continue to keep up this growth momentum in coming months as well," Suzuki Motorcycle India VP (Sales and Marketing) Atul Gupta said.
Bajaj Auto bike sales jump 68%
The country's second largest two-wheeler maker Bajaj Auto reported 68.39 per cent jump in its motorcycle sales at 2,82,808 units in June.
The company had sold 1,67,945 units in June last year, Bajaj Auto Ltd (BAL) said in a statement.
BAL's exports went up 68.36 per cent to 1,14,024 units in June from 67,726 units in June, 2009.
The company reported a rise of 31.87 per cent in its three-wheeler sales during last month at 32,614 units as against 24,731 units during the same month last year.
Total vehicle sales of the company last month stood at 3,15,422 units compared to 1,93,202 units in the same period a year ago, a growth of 63.26 per cent, the statement said.
The company had sold 1,67,945 units in June last year, Bajaj Auto Ltd (BAL) said in a statement.
BAL's exports went up 68.36 per cent to 1,14,024 units in June from 67,726 units in June, 2009.
The company reported a rise of 31.87 per cent in its three-wheeler sales during last month at 32,614 units as against 24,731 units during the same month last year.
Total vehicle sales of the company last month stood at 3,15,422 units compared to 1,93,202 units in the same period a year ago, a growth of 63.26 per cent, the statement said.
Old Bullets turn dear after product revamp
IT’S NOT only wine. Even iron becomes valuable over time, especially if it rolls on two wheels and has ‘Royal Enfield’ stamped on the fuel tank. Thousands of biking aficionados across the country are discovering to their dismay that the world’s oldest motorcycle in production has become more expensive, not only in showrooms but also in the large unorganised pre-owned d o m e s t i c two-whee ler market.
S a m p l e this: Twe nty
showrooms but also in the large unorganised p re o w n e d domestic two-wheeler market.
Sample this: Twenty three-year-old media executive Abhimanyu Chakravorty wanted to buy his first Royal Enfield bike. After scouting for a few bikes in Karol Bagh, the capital’s dingy pre-owned automobile hub, he had to shell out Rs 40,000 for a 2001 Standard model.
“A few months ago, 10-yearold Royal Enfield bikes were selling for around Rs 15,000Rs 20,000, depending on the condition of the machine. But now, suddenly, prices have gone up by almost 100 per cent,” he says.
"A few months ago, 10-yearold Royal Enfield bikes were selling for around Rs 15,000 Rs 20,000, depending on the condition of the machine. But now, sud denly, prices have gone up by al most 100 per cent," he says. According to Royal Enfield dealers, this trend was noticed a few months ago when Chennai-based motorcycle manufacturer, Royal Enfield Motorcycles, started offering an advanced all-aluminium united constructed engine (UCE) on all its models, starting with the much talked about 500-cc Classic variant that it launched here last year. The company had invested around Rs 80 crore in developing the new engine and claimed that it offered the much-needed reliability and fuel efficiency that Royal Enfield motorcycles earlier lacked. But it came at a price.
The Classic was priced well over Rs 1.2 lakh and even the 350-cc Standard model, which earlier retailed for Rs 72,000 now comes for Rs 93,000 with the new UCE mill.
But hardcore Royal Enfield enthusiasts are not amused. Saurabh Deb, a Royal Enfield owner for nine years, feels that the new models lack the classic Royal Enfield charm. “The characteristic thump is
missing,” he points out.
Scores of Bullet owners that FC spoke to second Deb and argue that the cult value of Royal Enfield motorcycles lies in their niggling mechanical faults and the now discontinued long bore ironcast engine, which produced the distinguishing beats, akin to Harley-Davidson’s ‘potato-potato’.
So, it comes as no surprise that all existing Royal Enfield bikes in the preowned market with ironcast engines have unexpectedly become prized collectors’ items. Says Mohd Alam who has been selling only
Enfield motorcycles in the capital for the last 20 years: “The first thing that all Bullet buyers look at before purchasing a Royal Enfield bike is the sound, the characteristic thump. Iron-cast engines produce something that the new crop of bikes can only dream to emulate.
So, old bikes have suddenly become the toast of town and ‘real’ Bullet lovers will settle for nothing less.” It’s difficult to estimate the number of Royal Enfield motorcycles on the road now since the bike has been around for more than half a century. But, by the
look of it, there are enough “iron-willed” motorcycles to keep fans from taking a bullet (pun intended).
But the manufacturer of the world’s oldest motorcycle in production seems unfazed. National marketing head at Royal Enfield Motorcycles, Shaji Koshy, is optimistic about his company’s new move and feels that the new engine will help spread the company’s footprints across the globe.
Incidentally, Royal Enfield Motorcycles is the only Indian two-wheeler company in the country that exports its products to devel
oped markets while the rest of the breed is still trying to find a footing in the developing ones.
Says Koshy: “Last year we sold 60,000 bikes. We are investing another Rs 6070 crore to increase our production capacity to one lakh units in the next two years.
Latin American markets are next on our agenda.” It still remains to be seen whether ‘royal’ beats can replace salsa, but what the heck, it seems well worth a ride.
S a m p l e this: Twe nty
showrooms but also in the large unorganised p re o w n e d domestic two-wheeler market.
Sample this: Twenty three-year-old media executive Abhimanyu Chakravorty wanted to buy his first Royal Enfield bike. After scouting for a few bikes in Karol Bagh, the capital’s dingy pre-owned automobile hub, he had to shell out Rs 40,000 for a 2001 Standard model.
“A few months ago, 10-yearold Royal Enfield bikes were selling for around Rs 15,000Rs 20,000, depending on the condition of the machine. But now, suddenly, prices have gone up by almost 100 per cent,” he says.
"A few months ago, 10-yearold Royal Enfield bikes were selling for around Rs 15,000 Rs 20,000, depending on the condition of the machine. But now, sud denly, prices have gone up by al most 100 per cent," he says. According to Royal Enfield dealers, this trend was noticed a few months ago when Chennai-based motorcycle manufacturer, Royal Enfield Motorcycles, started offering an advanced all-aluminium united constructed engine (UCE) on all its models, starting with the much talked about 500-cc Classic variant that it launched here last year. The company had invested around Rs 80 crore in developing the new engine and claimed that it offered the much-needed reliability and fuel efficiency that Royal Enfield motorcycles earlier lacked. But it came at a price.
The Classic was priced well over Rs 1.2 lakh and even the 350-cc Standard model, which earlier retailed for Rs 72,000 now comes for Rs 93,000 with the new UCE mill.
But hardcore Royal Enfield enthusiasts are not amused. Saurabh Deb, a Royal Enfield owner for nine years, feels that the new models lack the classic Royal Enfield charm. “The characteristic thump is
missing,” he points out.
Scores of Bullet owners that FC spoke to second Deb and argue that the cult value of Royal Enfield motorcycles lies in their niggling mechanical faults and the now discontinued long bore ironcast engine, which produced the distinguishing beats, akin to Harley-Davidson’s ‘potato-potato’.
So, it comes as no surprise that all existing Royal Enfield bikes in the preowned market with ironcast engines have unexpectedly become prized collectors’ items. Says Mohd Alam who has been selling only
Enfield motorcycles in the capital for the last 20 years: “The first thing that all Bullet buyers look at before purchasing a Royal Enfield bike is the sound, the characteristic thump. Iron-cast engines produce something that the new crop of bikes can only dream to emulate.
So, old bikes have suddenly become the toast of town and ‘real’ Bullet lovers will settle for nothing less.” It’s difficult to estimate the number of Royal Enfield motorcycles on the road now since the bike has been around for more than half a century. But, by the
look of it, there are enough “iron-willed” motorcycles to keep fans from taking a bullet (pun intended).
But the manufacturer of the world’s oldest motorcycle in production seems unfazed. National marketing head at Royal Enfield Motorcycles, Shaji Koshy, is optimistic about his company’s new move and feels that the new engine will help spread the company’s footprints across the globe.
Incidentally, Royal Enfield Motorcycles is the only Indian two-wheeler company in the country that exports its products to devel
oped markets while the rest of the breed is still trying to find a footing in the developing ones.
Says Koshy: “Last year we sold 60,000 bikes. We are investing another Rs 6070 crore to increase our production capacity to one lakh units in the next two years.
Latin American markets are next on our agenda.” It still remains to be seen whether ‘royal’ beats can replace salsa, but what the heck, it seems well worth a ride.
Auto cos hike rates as input costs rise
A fourth round of increase in automobile prices since January is on with firms such as General Motors, Ashok Leyland and Bajaj increasing rates to offset pressure from rising input costs, mainly that of steel and tyres.
Others such as Maruti Suzuki, Tata Motors and Toyota Kirloskar are also evaluating options.
While Ashok Leyland on Tuesday said it will increase prices of the entire range of commercial vehicles by anything between Rs 20,000 and Rs 50,000 with immediate effect, Hero Honda and Bajaj Auto have already hiked their two wheelers prices by up to Rs 1 ,000.
Auto makers have already hiked their prices thrice this year —— first in January due to rise in input costs, second following a two per cent excise duty hike in the Union Budget and third after the introduction of the new emission norms.
“Raw material prices are increasing day—by—day and it is affecting us... Our margins are under pressure,” Maruti Suzuki India Managing Executive Officer (Marketing and Sales), Mr Mayank Pareek, told PTI.
He, however, said the company has not decided yet on increasing the prices of its products. “We are in the process of finalising our contracts with our suppliers and any decision on price increase will be taken after that,” Mr Pareek said.
General Motors Vice President, Mr P Balendran, said the company will hike the prices by up to 2 per cent from July 5.
“Prices of raw materials, mainly steel and rubber, have risen sharply since the second quarter of last year... We are forced to increase prices this time,” he added.
The company has planned to hike the prices between Rs 1,000 and Rs 15,000 for different models.
Steel prices have risen by as much as Rs 6,000 a tonne since January on account of rising demand and increase in iron ore and coking coal rates.
Likewise, tyre prices also increased in recent past due to rising natural rubber costs. Tyre manufacturers have hiked prices by about 10 per cent this year and indicated a further hike of up to 25 per cent in the rest of the year. - PTI
Others such as Maruti Suzuki, Tata Motors and Toyota Kirloskar are also evaluating options.
While Ashok Leyland on Tuesday said it will increase prices of the entire range of commercial vehicles by anything between Rs 20,000 and Rs 50,000 with immediate effect, Hero Honda and Bajaj Auto have already hiked their two wheelers prices by up to Rs 1 ,000.
Auto makers have already hiked their prices thrice this year —— first in January due to rise in input costs, second following a two per cent excise duty hike in the Union Budget and third after the introduction of the new emission norms.
“Raw material prices are increasing day—by—day and it is affecting us... Our margins are under pressure,” Maruti Suzuki India Managing Executive Officer (Marketing and Sales), Mr Mayank Pareek, told PTI.
He, however, said the company has not decided yet on increasing the prices of its products. “We are in the process of finalising our contracts with our suppliers and any decision on price increase will be taken after that,” Mr Pareek said.
General Motors Vice President, Mr P Balendran, said the company will hike the prices by up to 2 per cent from July 5.
“Prices of raw materials, mainly steel and rubber, have risen sharply since the second quarter of last year... We are forced to increase prices this time,” he added.
The company has planned to hike the prices between Rs 1,000 and Rs 15,000 for different models.
Steel prices have risen by as much as Rs 6,000 a tonne since January on account of rising demand and increase in iron ore and coking coal rates.
Likewise, tyre prices also increased in recent past due to rising natural rubber costs. Tyre manufacturers have hiked prices by about 10 per cent this year and indicated a further hike of up to 25 per cent in the rest of the year. - PTI
Kinetic group bets big on auto components biz
Iconic two-wheeler maker Kinetic Motor Company, which had brands like Kinetic Honda and Luna under its umbrella, could stage a comeback in 2013. The company is looking to re-enter the two-wheeler market with its own brands of products once the non-compete pact, it signed while entering into a joint venture (JV) with Mahindra & Mahindra (M&M), expires.
The Sullaja Firodia Motwani-led two-wheeler company, which had for years empowered young bike riders with gearless drive and auto-start, had stopped production of its popular two-wheeler brands following the JV with cars-to-commercial vehicle major Mahindra & Mahindra (M&M) in July 2008.
A top Kinetic official told FE on condition of anonymity that the non-compete agreement is only for a limited period of five years after which the company could re-enter the two-wheeler market with its Kinetic brand. The non-compete agreement is slated to expire in July 2013. M&M has 80% stake in the JV Mahindra Kinetic Scooters & Motorcycles Ltd. According to the agreement, Kinetic Motor was given the option of selling the 20% stake in the next seven years.
In an interaction with FE on Thursday, Sulajja Firodia Motwani, managing director of Kinetic Motors, said in the next five years the company is going to focus on re-establishing its brand by targeting the customers directly.
However when asked about its plans to re-enter the two-wheeler market, Motwani said, "As of now we cannot enter the two-wheeler segment because of our JV with M&M."
Kapil Arora, an analyst with Ernst & Young, said the two-wheeler segment is expected to grow in leaps and bounds in the coming years, especially with the potential of electric two-wheelers.
"Largely the electric two-wheeler segment has not penetrated the market yet ...it is going to grow even more in the future," he said.
Another auto analyst said on conditions of anonymity that Kinetic has been looking to expand its brand and a re-entry into the two-wheeler market. He said though it would be the right choice for the company, lack of funds could be a constraint. "Kinetic has a strong brand recall but whether the company can mobilise enough funds will be the key (to the success of the its plan to re-enter the two-wheeler category," he said.
Kinetic Motors is part of the $500 million Firodia Group of Companies. Apart from Kinetic Motors, the group also has an auto component business which goes by the name of Kinetic Engineering Ltd.
The Sullaja Firodia Motwani-led two-wheeler company, which had for years empowered young bike riders with gearless drive and auto-start, had stopped production of its popular two-wheeler brands following the JV with cars-to-commercial vehicle major Mahindra & Mahindra (M&M) in July 2008.
A top Kinetic official told FE on condition of anonymity that the non-compete agreement is only for a limited period of five years after which the company could re-enter the two-wheeler market with its Kinetic brand. The non-compete agreement is slated to expire in July 2013. M&M has 80% stake in the JV Mahindra Kinetic Scooters & Motorcycles Ltd. According to the agreement, Kinetic Motor was given the option of selling the 20% stake in the next seven years.
In an interaction with FE on Thursday, Sulajja Firodia Motwani, managing director of Kinetic Motors, said in the next five years the company is going to focus on re-establishing its brand by targeting the customers directly.
However when asked about its plans to re-enter the two-wheeler market, Motwani said, "As of now we cannot enter the two-wheeler segment because of our JV with M&M."
Kapil Arora, an analyst with Ernst & Young, said the two-wheeler segment is expected to grow in leaps and bounds in the coming years, especially with the potential of electric two-wheelers.
"Largely the electric two-wheeler segment has not penetrated the market yet ...it is going to grow even more in the future," he said.
Another auto analyst said on conditions of anonymity that Kinetic has been looking to expand its brand and a re-entry into the two-wheeler market. He said though it would be the right choice for the company, lack of funds could be a constraint. "Kinetic has a strong brand recall but whether the company can mobilise enough funds will be the key (to the success of the its plan to re-enter the two-wheeler category," he said.
Kinetic Motors is part of the $500 million Firodia Group of Companies. Apart from Kinetic Motors, the group also has an auto component business which goes by the name of Kinetic Engineering Ltd.
TVS to double scooter sales revenue in 2010-11
Tamil Nadu based TVS Motor is expecting to double its revenue from scooter sales in the current fiscal on the back of its newly launched vehicle ?Wego? and robust market growth, a company official said today.
?Our sales from scooter segment will reach Rs. 1,500 crore- Rs. 1,600 crore in the current fiscal because of our new offering Wego in the market and good growth happening in country?s scooter market,? Company?s General Manager (Marketing), S Srinivas told reporters here today.
This is twice of its revenue from scooter sales in 2009-2010, where it netted Rs. 800 crore from sales in its scooter range including Teenz, Pep and Streak.
TVS is now eyeing sales of 4.8 lakh units of scooters this fiscal against 3 lakh units sold last year.
?Our sales from scooter segment will reach Rs. 1,500 crore- Rs. 1,600 crore in the current fiscal because of our new offering Wego in the market and good growth happening in country?s scooter market,? Company?s General Manager (Marketing), S Srinivas told reporters here today.
This is twice of its revenue from scooter sales in 2009-2010, where it netted Rs. 800 crore from sales in its scooter range including Teenz, Pep and Streak.
TVS is now eyeing sales of 4.8 lakh units of scooters this fiscal against 3 lakh units sold last year.
TVS Motor’s sales up 36 % in June 2010
Motorcycles grow 44 %; Scooters grow 42 %; Domestic sales up 33 %; Exports up 66 % Highest Three Wheeler Sales recorded in June 2010
TVS Motor Company continued its upward trend with growth in sales for the month of June 2010 registering an increase of 36% over the same month of the previous year. Total two wheeler sales of the company grew from 115,448 units in June 2009 to 156,685 units in the current month. Cumulative two wheeler sales from April to June 2010 increased 31% with sales of 456,041 units in the current financial year as against 347,141 units in the comparable period of the previous year. Domestic two wheeler sales witnessed robust growth of 33%, increasing from 105,361 units in June 2009 to 139,905 units in June 2010. The company not only recorded growth across all segments of the two wheeler market but also logged highest ever sales of its three wheelers during the month.
Motorcycle sales of the company registered 44 % growth in June 2010 with sales of 66,452 units compared to 46,048 units in the same month of the previous year. Scooters sales continued to excel growing at 42 % with sales of 36,742 units in the month of June 2010 as against 25,945 units in June 2009.
Three wheeler sales crossed the three thousand mark for the first time with the company registering a voluminous growth of 3,003 units in June 2010 over 810 units in June 2009.
Exports contributed handsomely to sales growth in June 2010 posting an increase of 66% with sales of 16,780 two-wheelers against 10,087 units in June 2009.
TVS Motor Company continued its upward trend with growth in sales for the month of June 2010 registering an increase of 36% over the same month of the previous year. Total two wheeler sales of the company grew from 115,448 units in June 2009 to 156,685 units in the current month. Cumulative two wheeler sales from April to June 2010 increased 31% with sales of 456,041 units in the current financial year as against 347,141 units in the comparable period of the previous year. Domestic two wheeler sales witnessed robust growth of 33%, increasing from 105,361 units in June 2009 to 139,905 units in June 2010. The company not only recorded growth across all segments of the two wheeler market but also logged highest ever sales of its three wheelers during the month.
Motorcycle sales of the company registered 44 % growth in June 2010 with sales of 66,452 units compared to 46,048 units in the same month of the previous year. Scooters sales continued to excel growing at 42 % with sales of 36,742 units in the month of June 2010 as against 25,945 units in June 2009.
Three wheeler sales crossed the three thousand mark for the first time with the company registering a voluminous growth of 3,003 units in June 2010 over 810 units in June 2009.
Exports contributed handsomely to sales growth in June 2010 posting an increase of 66% with sales of 16,780 two-wheelers against 10,087 units in June 2009.