In line with conventional wisdom, small cars give the best fuel efficiency. The smallest of them, the Tata Nano, boasts a good 16 per cent better mileage than its nearest petrol counterpart, Maruti’s Alto.
The house of Tatas makes the most fuel efficient cars. The Nano, Indica, Indigo and Manza are segment leaders. What works for the company is that it has a head start in diesel technology, courtesy its partnership with Fiat Spa and also its own trucking roots.
Diesel cars are way more fuel efficient than petrol ones. Even though they cost a good Rs 50-60,000 more, diesel is the way to go if your vehicle usage is high. Moreover, historically, petrol prices rise more often than diesel prices.
SUVs, true to their nature, are gas guzzlers; not one SUV logs a fuel average of more than 15 kmpl. Ultra luxury cars and convertibles, unsurprisingly, are the least fuel-efficient.
Bajaj springs a surprise with its Discover DTS-si clocking the best mileage amongst bikes. After that, it is the commuter bikes from Honda and Hero Honda that score with their 80 kmpl-plus figures. Efficient cars
Scared to experiment
Honda India is facing a problem which all its rivals would give an arm and a leg to have — an unabated demand for its bikes and scooters. But long waiting periods are leading to customer dissatisfaction and the company has begun work on a new two-wheeler factory.
Meanwhile, it has also launched the upmarket and sporty CB Unicorn Dazzler, which should add more excitement to Honda showrooms that are already buzzing with the recently introduced CB Twister.
Looks
The Dazzler’s side profile and rear look similar to the Hero Honda Hunk. There are styling cues from Honda’s top-of-the-line VFR 1200F, seen in its headlight and floating cowls. All the lower sections are black, including its smart engine cases, smoothly sculpted alloy footrest mounts and sleek silencer. The handlebar is black-powder-coated too.
This new Honda gets digital instruments with an analogue rev counter dominating its face and an inset digital speedometer, odometer clock and fuel gauge. The Dazzler comes with freshly styled mirrors, grips, switches and control levers, all imparting a Honda-typical high-quality feel. Bar end weights are standard. The fuel tank can hold 12 litres and comes with a smart filler lid. It looks massive, as do the flank panels. A maintenance-free battery is standard.
The Dazzler comes with a bi-coloured seat and tail. Its chain is exposed and the bike sports 3D decals. It packs the same high overall quality found on all Hondas and will be sold in gold, black, silver or red. The Dazzler engine is similar to the Unicorn’s — a single-cylinder, air-cooled, twin-valve unit that displaces an identical 149.1 cc.
There’s a viscous air filter, and the new motorcycle complies with BS III norms. The bike gets a CV-type carburettor and uses a five-speed gearbox that shifts in a one-down, four-up pattern.
Ride
What’s disappointing is that the Dazzler develops only 14 bhp (at 8500 rpm) of maximum power and 1.3 kgm of torque at 6500 rpm.
While it’s interesting to note that both values are achieved at a higher rpm than the Unicorn, which will make for more exciting power delivery, we fail to understand why Honda has been so conservative, not giving the Dazzler a higher-capacity engine and more power.
The new bike comes with a diamond-type single downtube frame, holding onto its engine as a stressed member. Suspension is standard telescopic front forks, and a monoshock working with a rectangle section swingarm at the rear.
The CB Unicorn Dazzler should be more entertaining to ride than the older Unicorn, with quicker, relatively nimble handling as it comes with a shorter 1328 mm wheelbase and rides on 17-inch rims. Tubeless tyres are stock kit as is the welcome addition of disc brakes both in front and at the rear.
Handling
We are yet to ride a Dazzler but given Honda’s reputation, we’re confident this is going to be a refined, sweet-handling motorcycle.
The Dazzler is stylish with upmarket features like a digital instruments stack, monoshock, 17-inch tubeless tyres and disc brakes front and rear. But enthusiasts might feel let down at first glimpse, and that’s because we’ve enjoyed all this on the Unicorn for five years. Which is long enough for a company like Honda to have turned adventurous and started making bolder moves in India.
Price : Rs 62,900 (ex-showroom, Delhi)
On sale : Now
L/W/H : 2073/ 754/ 1085 mm
Wheelbase : 1328 mm
Ground clearance : 141 mm
Fuel tank capacity : 12 litres
Kerb weight : 138 kg
Engine layout : Single-cylinder, air-cooled, four-stroke
Displacement : 149.1 cc
Power : 14 bhp at 8500 rpm
Torque : 1.3 kgm at 6500 rpm
Gearbox : 5-speed, 1-down, 4-up
Front suspension : Telescopic forks
Rear suspension : Monoshock, rectangular swingarm
Front brake : 240 mm disc
Rear brake : 220 mm disc
Wheels : 6-spoke alloy
Rim size (f-r) : 17 inches
Tyre size (f-r) : 80/100 x 17- 110/80 x 17 inches
Verdict
Honda should have made the Dazzler sportier, more aggressive and should have given the new bike some more power. Honestly, we cannot see enough punch in the Dazzler to set it apart from the Unicorn.
Meanwhile, it has also launched the upmarket and sporty CB Unicorn Dazzler, which should add more excitement to Honda showrooms that are already buzzing with the recently introduced CB Twister.
Looks
The Dazzler’s side profile and rear look similar to the Hero Honda Hunk. There are styling cues from Honda’s top-of-the-line VFR 1200F, seen in its headlight and floating cowls. All the lower sections are black, including its smart engine cases, smoothly sculpted alloy footrest mounts and sleek silencer. The handlebar is black-powder-coated too.
This new Honda gets digital instruments with an analogue rev counter dominating its face and an inset digital speedometer, odometer clock and fuel gauge. The Dazzler comes with freshly styled mirrors, grips, switches and control levers, all imparting a Honda-typical high-quality feel. Bar end weights are standard. The fuel tank can hold 12 litres and comes with a smart filler lid. It looks massive, as do the flank panels. A maintenance-free battery is standard.
The Dazzler comes with a bi-coloured seat and tail. Its chain is exposed and the bike sports 3D decals. It packs the same high overall quality found on all Hondas and will be sold in gold, black, silver or red. The Dazzler engine is similar to the Unicorn’s — a single-cylinder, air-cooled, twin-valve unit that displaces an identical 149.1 cc.
There’s a viscous air filter, and the new motorcycle complies with BS III norms. The bike gets a CV-type carburettor and uses a five-speed gearbox that shifts in a one-down, four-up pattern.
Ride
What’s disappointing is that the Dazzler develops only 14 bhp (at 8500 rpm) of maximum power and 1.3 kgm of torque at 6500 rpm.
While it’s interesting to note that both values are achieved at a higher rpm than the Unicorn, which will make for more exciting power delivery, we fail to understand why Honda has been so conservative, not giving the Dazzler a higher-capacity engine and more power.
The new bike comes with a diamond-type single downtube frame, holding onto its engine as a stressed member. Suspension is standard telescopic front forks, and a monoshock working with a rectangle section swingarm at the rear.
The CB Unicorn Dazzler should be more entertaining to ride than the older Unicorn, with quicker, relatively nimble handling as it comes with a shorter 1328 mm wheelbase and rides on 17-inch rims. Tubeless tyres are stock kit as is the welcome addition of disc brakes both in front and at the rear.
Handling
We are yet to ride a Dazzler but given Honda’s reputation, we’re confident this is going to be a refined, sweet-handling motorcycle.
The Dazzler is stylish with upmarket features like a digital instruments stack, monoshock, 17-inch tubeless tyres and disc brakes front and rear. But enthusiasts might feel let down at first glimpse, and that’s because we’ve enjoyed all this on the Unicorn for five years. Which is long enough for a company like Honda to have turned adventurous and started making bolder moves in India.
Price : Rs 62,900 (ex-showroom, Delhi)
On sale : Now
L/W/H : 2073/ 754/ 1085 mm
Wheelbase : 1328 mm
Ground clearance : 141 mm
Fuel tank capacity : 12 litres
Kerb weight : 138 kg
Engine layout : Single-cylinder, air-cooled, four-stroke
Displacement : 149.1 cc
Power : 14 bhp at 8500 rpm
Torque : 1.3 kgm at 6500 rpm
Gearbox : 5-speed, 1-down, 4-up
Front suspension : Telescopic forks
Rear suspension : Monoshock, rectangular swingarm
Front brake : 240 mm disc
Rear brake : 220 mm disc
Wheels : 6-spoke alloy
Rim size (f-r) : 17 inches
Tyre size (f-r) : 80/100 x 17- 110/80 x 17 inches
Verdict
Honda should have made the Dazzler sportier, more aggressive and should have given the new bike some more power. Honestly, we cannot see enough punch in the Dazzler to set it apart from the Unicorn.
Back to Basics
Zig Wheels (Supplement of The Economic Times)
Yamaha is giving the mass market commuter segment another shot with the new YBR Abhishek Nigam checks it out
The 100cc commuter segment is still the busiest among all. While perfomance bike trickle out, most of the manufactures still depend on the 100cc bikes for their bread and butter, Honda recently launched the CB twister which totally changed the name of the game. Yamaha in a bid to capture its share of the commuter pie has just come out with its mass market offering. christened the YBR 110.
Look beneath the snazzy sticker work and there is not much to differentiate it from its lesser endowed sibling the alba. The design is pretty conventional, and Yamaha has tried to jazz it up with a host of cosmetic upgrades. The new graphics do look smart though and our test bike in black-red combolooked pleaseing to say the least. Getting to the switch gear, everything again is pretty run of the mill. The speedo console is flanked by a clear, easy to read speedometer on the left and a fuel gauge accompained with the regular tell-tale indicators on the right.
Powering the YBR is the same 2-value, SOHC, 4-stroke engine which powers the G5 and the Alba. The engine puts out a pretty par for the course 7.5 PS @7500 rpm and a maximum torque of 7.8 Nm @ 6000 rpm. First thing to notice when you thumb the starter button is how smooth the engine is. The shirt action on the 4-speed gear box is also good with no false neutrals and a pretty good feel.
The riding position is nice and upright like most other bikes in the segment. The ergonomics are pretty much on the money making long commuters an easy affair. Ride quality is extremely pliant and handled with aplomb.
However the gearing mars progress considerably.Going up a mild gradient, third gear struggles to get up to any speed and shifting to second makes the bike groan out of breath. The sprint to 60 km/h however takes a decent 8.14 seconds whichis pretty quick amongst its counterparts. Keeping the throttie twisted to the stop saw the YBR hit a top speed of 88 km/h. Braking too is woefully inadequate with the 130 mm drums all round providing very little resistance.
On the important mileage front, the YBR returned 65.2 kmpl and on the highway and managed 76.4 kmpl giving it an overall figure of 68 kmpl. with a 13 litre fuel tank, the YBR is good for all of 884 km before you have to visit the petrol station again.
At Rs. 41000 ex-showroom Delhi, it's just marginally cheaper than a similarly specced Honda CB Twister and a grand more than the Discover 100, both of them which offer better performance, style and efficiency. Contrary to what we say for other manufactures, Yamaha have definitely arrived as far as perforamnce bike go, but their mass movers still have a long way to go.
Yamaha is giving the mass market commuter segment another shot with the new YBR Abhishek Nigam checks it out
The 100cc commuter segment is still the busiest among all. While perfomance bike trickle out, most of the manufactures still depend on the 100cc bikes for their bread and butter, Honda recently launched the CB twister which totally changed the name of the game. Yamaha in a bid to capture its share of the commuter pie has just come out with its mass market offering. christened the YBR 110.
Look beneath the snazzy sticker work and there is not much to differentiate it from its lesser endowed sibling the alba. The design is pretty conventional, and Yamaha has tried to jazz it up with a host of cosmetic upgrades. The new graphics do look smart though and our test bike in black-red combolooked pleaseing to say the least. Getting to the switch gear, everything again is pretty run of the mill. The speedo console is flanked by a clear, easy to read speedometer on the left and a fuel gauge accompained with the regular tell-tale indicators on the right.
Powering the YBR is the same 2-value, SOHC, 4-stroke engine which powers the G5 and the Alba. The engine puts out a pretty par for the course 7.5 PS @7500 rpm and a maximum torque of 7.8 Nm @ 6000 rpm. First thing to notice when you thumb the starter button is how smooth the engine is. The shirt action on the 4-speed gear box is also good with no false neutrals and a pretty good feel.
The riding position is nice and upright like most other bikes in the segment. The ergonomics are pretty much on the money making long commuters an easy affair. Ride quality is extremely pliant and handled with aplomb.
However the gearing mars progress considerably.Going up a mild gradient, third gear struggles to get up to any speed and shifting to second makes the bike groan out of breath. The sprint to 60 km/h however takes a decent 8.14 seconds whichis pretty quick amongst its counterparts. Keeping the throttie twisted to the stop saw the YBR hit a top speed of 88 km/h. Braking too is woefully inadequate with the 130 mm drums all round providing very little resistance.
On the important mileage front, the YBR returned 65.2 kmpl and on the highway and managed 76.4 kmpl giving it an overall figure of 68 kmpl. with a 13 litre fuel tank, the YBR is good for all of 884 km before you have to visit the petrol station again.
At Rs. 41000 ex-showroom Delhi, it's just marginally cheaper than a similarly specced Honda CB Twister and a grand more than the Discover 100, both of them which offer better performance, style and efficiency. Contrary to what we say for other manufactures, Yamaha have definitely arrived as far as perforamnce bike go, but their mass movers still have a long way to go.
TALE OF CONTRASTS
Business Standard-
While Bajaj Auto wants to focus on just two brands, rival Hero Honda will add more to its already crowded product portfolio.
The more, the merrier’ has been the theme song of Bajaj Auto for many years. Not anymore.
India’s second largest two-wheeler company, which had bombarded the market with multiple brands (remember XCD, Kristal, Platina and a few others?) to break the near-monopoly of market leader Hero Honda in the economy segment, has withdrawn all but two of its brands.
The move is working. Last year, Bajaj Auto posted its best-ever annual sales, riding high on just two brands - Discover and Pulsar. The Discover is clearly positioned for the commuter segment and the Pulsar as the ‘sporty’ option. While the Pulsar has held its own over the years in the power and performance segment, the Discover is the pivot in the commuting category.
Bajaj Auto Managing Director Rajiv Bajaj says “brands can be created easily by the R&D people. We have to figure out if there is a third category of buyers out there. A Pulsar buyer is sporty, young, and wants to have some fun with the bike. The Discover buyer is more sober and an economy- conscious person who wants to take a safe decision and higher mileage,” he says.
“If we create a brand in the absence of a target category, it could be like putting up a restaurant which serves food nobody wants to eat. I could put up a Lebanese restaurant in Pune and go bankrupt”, adds Bajaj.
The MD says a manufacturer can merrily create a brand and forget about it, but he also needs to look out whether there is a category for it. “Creation of brands is in the hands of the manufacturer but the creation of a category is in the hands of the consumer. So unless we are sure that there is a third category there, we would be making a mistake by creating that third brand”, he says.
The company has changed its strategy from a product to a brand-led company as it believes that the product game will not go anywhere and it is only brands that will make all the difference.
Presently about 70 per cent of the company’s sales come from the Discover and Pulsar segment, both of which share seven models between them — up from just three about three years ago. The company reported its highest ever monthly sales in April (276,000 units) followed by a record number in May. It aims to sell one million Pulsar units every year starting this year.
The company, which had a 20.47 per cent market share in the two-wheeler category in May – up from 19.05 per cent in the previous month – is working on adding yet another model under the Pulsar category in the coming months. It also launched last month a new 150 cc bike under the Discover brand. The company intends to focus on just these two brands till the market is mature enough for more.
However, that’s something the market leader doesn’t believe in. Hero Honda, which had a 45.38 per cent market share in May (48 per cent in April), is planning a brand blitz by launching at least two more new brand launches this year to take its total tally to 10.
Anil Dua, vice president, sales and marketing, Hero Honda, says, "We had very successful brand launches in the past including ZMR, Hunk, Passion Pro and Pleasure and want that to continue.”
Asked whether launching of new brands and turning them into successful ones is easier for a market leader, Dua says the success came because Hero Honda positioned its brands sharply on a clearly differentiated platform. “It’s all a function of the homework and ground work. If the customer trusts the company, the resistance to new launches is less. It’s indeed tougher for a smaller company to promote a new brand,” he adds.
Splendour, which is in its 16th year, is the largest two-wheeler brand in the world followed by Passion.
Last year, five models under these two brands clocked sales of over two million units. The company says it is presently struggling to increase the capacity of the Hunk as demand is far outstripping supply.
A section of the market believes that the success of the Hero Honda models is more because of the company's brand recall rather than the products themselves (remember the caption 'Fill it, shut it, forget it’). But that still seems to be only a minority opinion.
Fiscal 2010 saw Hero Honda launching nine new models across segments, all of which are doing well. Sales of Pleasure, for example, have already crossed the 20,000 units per month threshold. Also, powered by its 4,200 touch points, the company has already crossed the landmark figure of four million cumulative sales in a single year and posted sales of more than a million units for every quarter in FY’10.
While Bajaj Auto wants to focus on just two brands, rival Hero Honda will add more to its already crowded product portfolio.
The more, the merrier’ has been the theme song of Bajaj Auto for many years. Not anymore.
India’s second largest two-wheeler company, which had bombarded the market with multiple brands (remember XCD, Kristal, Platina and a few others?) to break the near-monopoly of market leader Hero Honda in the economy segment, has withdrawn all but two of its brands.
The move is working. Last year, Bajaj Auto posted its best-ever annual sales, riding high on just two brands - Discover and Pulsar. The Discover is clearly positioned for the commuter segment and the Pulsar as the ‘sporty’ option. While the Pulsar has held its own over the years in the power and performance segment, the Discover is the pivot in the commuting category.
Bajaj Auto Managing Director Rajiv Bajaj says “brands can be created easily by the R&D people. We have to figure out if there is a third category of buyers out there. A Pulsar buyer is sporty, young, and wants to have some fun with the bike. The Discover buyer is more sober and an economy- conscious person who wants to take a safe decision and higher mileage,” he says.
“If we create a brand in the absence of a target category, it could be like putting up a restaurant which serves food nobody wants to eat. I could put up a Lebanese restaurant in Pune and go bankrupt”, adds Bajaj.
The MD says a manufacturer can merrily create a brand and forget about it, but he also needs to look out whether there is a category for it. “Creation of brands is in the hands of the manufacturer but the creation of a category is in the hands of the consumer. So unless we are sure that there is a third category there, we would be making a mistake by creating that third brand”, he says.
The company has changed its strategy from a product to a brand-led company as it believes that the product game will not go anywhere and it is only brands that will make all the difference.
Presently about 70 per cent of the company’s sales come from the Discover and Pulsar segment, both of which share seven models between them — up from just three about three years ago. The company reported its highest ever monthly sales in April (276,000 units) followed by a record number in May. It aims to sell one million Pulsar units every year starting this year.
The company, which had a 20.47 per cent market share in the two-wheeler category in May – up from 19.05 per cent in the previous month – is working on adding yet another model under the Pulsar category in the coming months. It also launched last month a new 150 cc bike under the Discover brand. The company intends to focus on just these two brands till the market is mature enough for more.
However, that’s something the market leader doesn’t believe in. Hero Honda, which had a 45.38 per cent market share in May (48 per cent in April), is planning a brand blitz by launching at least two more new brand launches this year to take its total tally to 10.
Anil Dua, vice president, sales and marketing, Hero Honda, says, "We had very successful brand launches in the past including ZMR, Hunk, Passion Pro and Pleasure and want that to continue.”
Asked whether launching of new brands and turning them into successful ones is easier for a market leader, Dua says the success came because Hero Honda positioned its brands sharply on a clearly differentiated platform. “It’s all a function of the homework and ground work. If the customer trusts the company, the resistance to new launches is less. It’s indeed tougher for a smaller company to promote a new brand,” he adds.
Splendour, which is in its 16th year, is the largest two-wheeler brand in the world followed by Passion.
Last year, five models under these two brands clocked sales of over two million units. The company says it is presently struggling to increase the capacity of the Hunk as demand is far outstripping supply.
A section of the market believes that the success of the Hero Honda models is more because of the company's brand recall rather than the products themselves (remember the caption 'Fill it, shut it, forget it’). But that still seems to be only a minority opinion.
Fiscal 2010 saw Hero Honda launching nine new models across segments, all of which are doing well. Sales of Pleasure, for example, have already crossed the 20,000 units per month threshold. Also, powered by its 4,200 touch points, the company has already crossed the landmark figure of four million cumulative sales in a single year and posted sales of more than a million units for every quarter in FY’10.
Suzuki brings to India two new sports bikes
NEW DELHI: Japanese two-wheeler major Suzuki on Monday launched its superbike GSX-R1000 at Rs 12.75 lakh (ex-showroom, Delhi) making it the costliest product from the company's stable in the country.
Suzuki Motorcycle India, the wholly-owned subsidiary of the Japanese giant, doled out another superbike Bandit1250S worth Rs 8.5 lakh. It currently sells two more premium bikes -- Hayabusa and Intruder -- costing Rs 12.5 lakh each.
"This launch is in line with our aim to deliver outstanding technology and performance to the Indian market. We are pleased to offer exciting riding experience to pro-bikers," Suzuki Motorcycle India Pvt Ltd (SMIPL) Chairman Katsumi Takata said in a statement.
The company, which is a marginal player in the commuter segment of the two-wheeler market, is targeting to sell at least 200 units of the two new bikes in the first year.
Suzuki Motorcycle India, the wholly-owned subsidiary of the Japanese giant, doled out another superbike Bandit1250S worth Rs 8.5 lakh. It currently sells two more premium bikes -- Hayabusa and Intruder -- costing Rs 12.5 lakh each.
"This launch is in line with our aim to deliver outstanding technology and performance to the Indian market. We are pleased to offer exciting riding experience to pro-bikers," Suzuki Motorcycle India Pvt Ltd (SMIPL) Chairman Katsumi Takata said in a statement.
The company, which is a marginal player in the commuter segment of the two-wheeler market, is targeting to sell at least 200 units of the two new bikes in the first year.
TVS Motor signs MOU with Thiagarajar College
Madurai, June 24
TVS Motor Company and the Thiagarajar College of Engineering (TCE) have signed a memorandum of understanding (MoU) for including industrial training in the B.E. Mechanical Engineering programme of the college.
The MoU was signed by Mr K.N. Radhakrishnan, President and CEO, TVS Motor Company, and Dr V. Abhai Kumar, Principal, TCE.
The collaborative undergraduate programme would include four to six weeks of internship during the semester vacations as well as a major project at the company or any of its associates during the last semester.
Students of the BE Mechanical Engineering programme would be eligible to pursue the course at the end of the first semester and initially 30 students would be selected with the benefit of financial assistance and the strength would be raised over a period.
Speaking on the occasion, Mr Radhakrishnan said the objective of the collaboration was to produce high-calibre mechanical engineers who would be industry-ready on completion of the course. “Currently, it takes one-and-a-half years to train people in the industry,” he said.
Managers from TVS Motor Company and Professors from TCE would co-create a contemporary curriculum, teaching methodology and the evaluation process to prepare the students as first-class corporate citizens in about two years, he said.
The programme is a win-win opportunity for the students of the college as well as TVS Motor Company as it seeks to enhance the competence of the students and act as a catalyst for placements on completion of the course.
As the specific skills of the students is showcased during the internship, the company also stands to gain, Dr Abhai Kumar added.
TVS Motor Company and the Thiagarajar College of Engineering (TCE) have signed a memorandum of understanding (MoU) for including industrial training in the B.E. Mechanical Engineering programme of the college.
The MoU was signed by Mr K.N. Radhakrishnan, President and CEO, TVS Motor Company, and Dr V. Abhai Kumar, Principal, TCE.
The collaborative undergraduate programme would include four to six weeks of internship during the semester vacations as well as a major project at the company or any of its associates during the last semester.
Students of the BE Mechanical Engineering programme would be eligible to pursue the course at the end of the first semester and initially 30 students would be selected with the benefit of financial assistance and the strength would be raised over a period.
Speaking on the occasion, Mr Radhakrishnan said the objective of the collaboration was to produce high-calibre mechanical engineers who would be industry-ready on completion of the course. “Currently, it takes one-and-a-half years to train people in the industry,” he said.
Managers from TVS Motor Company and Professors from TCE would co-create a contemporary curriculum, teaching methodology and the evaluation process to prepare the students as first-class corporate citizens in about two years, he said.
The programme is a win-win opportunity for the students of the college as well as TVS Motor Company as it seeks to enhance the competence of the students and act as a catalyst for placements on completion of the course.
As the specific skills of the students is showcased during the internship, the company also stands to gain, Dr Abhai Kumar added.
Low demand forces TVS to stop producing e-vehicles
Chennai-based TVS Motor Company says it has put its electric vehicles production plans on hold due to lukewarm response from the market.
The company has shelved plans to launch electric three-wheelers and stopped production of battery powered Scooty Teenz scooter.
“We have an electric three-wheeler, which we had planned to introduce but there is no market for such products. So we don’t have any plans to launch it now,” TVS Motor Company marketing president, Mr H.S. Goindi, said.
It has no immediate plans to resume the production of its electric scooterette, Scooty Teenz Electric, which it stopped manufacturing since May 2009. The electric model was launched in April 2008.
The company has shelved plans to launch electric three-wheelers and stopped production of battery powered Scooty Teenz scooter.
“We have an electric three-wheeler, which we had planned to introduce but there is no market for such products. So we don’t have any plans to launch it now,” TVS Motor Company marketing president, Mr H.S. Goindi, said.
It has no immediate plans to resume the production of its electric scooterette, Scooty Teenz Electric, which it stopped manufacturing since May 2009. The electric model was launched in April 2008.
Suman Kant Munjal to hold 26% stake in Hero Honda
Post-restructuring in the Hero Group, Suman Kant Munjal, the second son of Hero Honda Chairman Brij Mohan Lall Munjal, will own 26 per cent stake in Hero Honda Motors, the country’s largest two-wheeler company. The 26 per cent stake was earlier scattered among Munjal siblings, while the remaining 26 per cent continues to be with Honda Motor Company of Japan. While public holding as of March 31 is 45.06 per cent, promoters and promoters group hold the rest.
Under the family settlement that concluded recently, Brijmohan’s family will own Rockman Cycle, Hero Corporate Service, Hero ITES, Hero Mindmine, Hero Soft and Easybill. All these companies will be jointly owned by Brij Mohan Lall Munjal’s sons — Pawan Kant, Sunil Kant, Suman Kant — and the family of late Raman Kant.
Under the family settlement that concluded recently, Brijmohan’s family will own Rockman Cycle, Hero Corporate Service, Hero ITES, Hero Mindmine, Hero Soft and Easybill. All these companies will be jointly owned by Brij Mohan Lall Munjal’s sons — Pawan Kant, Sunil Kant, Suman Kant — and the family of late Raman Kant.
TVS plans to relaunch Max motorbike in July
The avatar of the two-stroke bike may be priced below Rs 40,000 The company aims to sell two million bikes and Bloomberg three-wheelers this financial year INDIA’S third largest two wheeler maker TVS Motor is looking to relaunch the Max motorcycle as a fourstroke 100 cc bike named Max 4R in July this year, a source with direct knowledge of the development said.
TVS had discontinued the Max 100 in 2005 as its two-stroke engine was not compliant with the then implemented Bharat Stage II emission norms. The Max range constituted about 90 per cent of the company’s sales in the earlier part of the decade.
“It could be launched.But I cannot give you further details,” company spokesman Adrian Dass said.
TVS is likely to see a big chunk of sales coming from its entry-level motorcycles.The company aims to sell two million twoand threewheelers this financial year.
The entry-level motorcycle segment currently dominated by the likes of Hero Honda's CD Dawn and Bajaj Auto's Platina. The segment forms 76 per cent of all motorcycle sales.
About 7.34 million motorcycles were sold in 2009-10, according to the Society of Indian Automobile Manufacturers. Hero Honda has a market share of close to 75 per cent of the entry-level motorcycle pie.
Honda Motorcycle & Scooter India at this year’s Auto Expo announced its foray into the entry-level bike segment with the 110 cc CB Twister that costs about Rs 42,000. India Yamaha Motor launched the 110 cc YBR bike last month priced at Rs 41,370.
The TVS Max 4R is expected to be priced below Rs 40,000. TVS already sells the Star, Sport and the recently introduced autoclutch Jive in the entrylevel motorcycles segment.
TVS had discontinued the Max 100 in 2005 as its two-stroke engine was not compliant with the then implemented Bharat Stage II emission norms. The Max range constituted about 90 per cent of the company’s sales in the earlier part of the decade.
“It could be launched.But I cannot give you further details,” company spokesman Adrian Dass said.
TVS is likely to see a big chunk of sales coming from its entry-level motorcycles.The company aims to sell two million twoand threewheelers this financial year.
The entry-level motorcycle segment currently dominated by the likes of Hero Honda's CD Dawn and Bajaj Auto's Platina. The segment forms 76 per cent of all motorcycle sales.
About 7.34 million motorcycles were sold in 2009-10, according to the Society of Indian Automobile Manufacturers. Hero Honda has a market share of close to 75 per cent of the entry-level motorcycle pie.
Honda Motorcycle & Scooter India at this year’s Auto Expo announced its foray into the entry-level bike segment with the 110 cc CB Twister that costs about Rs 42,000. India Yamaha Motor launched the 110 cc YBR bike last month priced at Rs 41,370.
The TVS Max 4R is expected to be priced below Rs 40,000. TVS already sells the Star, Sport and the recently introduced autoclutch Jive in the entrylevel motorcycles segment.
Rallyists thrill coffee country
Ooty: Coorg and rallying go hand in hand. It was back to thrilling 'coffee country' for some high speed action on the second day of the Maruti Suzuki Dakshin Dare.
The day began after the overnight halt in Mysore, as usual in the wee hours of the morning. It was a 100km drive. Thankfully, the highway allowed for a high speed run. Once in Polibetta, where the stages were run, the lush green coffee plantations were a welcoming sight. After some setting up work, it was back to the fast action. The local people proved to be a rather enthusiastic lot, shouting and cheering as the cars and bikes went past. One coffee plantation worker even asked, "Is Sebastien Loeb coming in his Citroen car?" Maybe the six-time world champion will turn up after a few more years when the World Rally Championship comes to India.
The day's schedule included three stages, which were to be run twice each. The stages were nine, 16 and 11 km long. Some of the stages were pretty smooth, while others were perfect for off-road vehicles. That must have been something drivers like overnight leader Niaz Ali (co-driver Kim Epton) in a Suzuki Grand Vitara, Suresh Rana (Ashwin Naik), Sachin Singh (Nikhil Pai), both in Maruti Suzuki Gypsy vehicles, would have enjoyed. But for rally driver Prithvi Dominic (Jeevaratinam), who was in a Mitsubishi Cedia, the bumpy roads proved to be a nightmare. To top it all, several competitors went off at a certain turn in the third stage.
Nine cars in the Ultimate category were running out of the 12 that started on the first day. Sachin Singh and Khushwant Randhawa went out but are likely to rejoin on Thursday. Shailendra Hegde (Shiraz Ahmed) went out on the first day itself.
Team TVS rider KP Arvind, the overnight leader, too had a bout of misfortune. The swing arm on his TVS motorbike broke in the morning and he could not continue on the day. However, he will continue the rally on Thursday under the super rally format.
After the stages in Polibetta till the afternoon, it was a treacherous but amazing drive from Coorg to Ooty, where the entourage is halting for the night. The 200km drive was no piece of cake either. Though it was only the transport stage and ample time was given to the competitors to report at the final time control checkpoint for the day, rain and fog did not make things easy. More than the car drivers, it was the bikers who had to face the elements. The added difficulty was the numerous hairpin bends that one had to negotiate on the way up.
On the third day of the event on Thursday, the stages will be run outside the town and on the way to Coimbatore. The stages will be much faster than on Wednesday and there should be some good action.
The day began after the overnight halt in Mysore, as usual in the wee hours of the morning. It was a 100km drive. Thankfully, the highway allowed for a high speed run. Once in Polibetta, where the stages were run, the lush green coffee plantations were a welcoming sight. After some setting up work, it was back to the fast action. The local people proved to be a rather enthusiastic lot, shouting and cheering as the cars and bikes went past. One coffee plantation worker even asked, "Is Sebastien Loeb coming in his Citroen car?" Maybe the six-time world champion will turn up after a few more years when the World Rally Championship comes to India.
The day's schedule included three stages, which were to be run twice each. The stages were nine, 16 and 11 km long. Some of the stages were pretty smooth, while others were perfect for off-road vehicles. That must have been something drivers like overnight leader Niaz Ali (co-driver Kim Epton) in a Suzuki Grand Vitara, Suresh Rana (Ashwin Naik), Sachin Singh (Nikhil Pai), both in Maruti Suzuki Gypsy vehicles, would have enjoyed. But for rally driver Prithvi Dominic (Jeevaratinam), who was in a Mitsubishi Cedia, the bumpy roads proved to be a nightmare. To top it all, several competitors went off at a certain turn in the third stage.
Nine cars in the Ultimate category were running out of the 12 that started on the first day. Sachin Singh and Khushwant Randhawa went out but are likely to rejoin on Thursday. Shailendra Hegde (Shiraz Ahmed) went out on the first day itself.
Team TVS rider KP Arvind, the overnight leader, too had a bout of misfortune. The swing arm on his TVS motorbike broke in the morning and he could not continue on the day. However, he will continue the rally on Thursday under the super rally format.
After the stages in Polibetta till the afternoon, it was a treacherous but amazing drive from Coorg to Ooty, where the entourage is halting for the night. The 200km drive was no piece of cake either. Though it was only the transport stage and ample time was given to the competitors to report at the final time control checkpoint for the day, rain and fog did not make things easy. More than the car drivers, it was the bikers who had to face the elements. The added difficulty was the numerous hairpin bends that one had to negotiate on the way up.
On the third day of the event on Thursday, the stages will be run outside the town and on the way to Coimbatore. The stages will be much faster than on Wednesday and there should be some good action.
Energy-efficient bikes may zoom on fuel price hike
The government’s move to free energy prices, which may raise fuel rates in the country, is expected to push the demand for small-capacity, fuel-efficient bikes. Reason: The sequential rise in inflation will lead to a change in the buying pattern among bike consumers.
A 100-110cc bike gives an average mileage of 75-80 km a litre under a mix of city and highway riding conditions, compared to just 40-50 km a litre or less by a 150cc and above bike. Although the fuel-efficient range is targeted more towards the interior of the country than urban centres, companies like Honda Motorcycle and Scooter India (HMSI), India’s fourth-biggest seller of two-wheelers, feel that a constant increase in fuel prices will change the buying pattern even in the cities.
Naresh Rattan, vice-president (marketing and sales), HMSI, said: “The overall mindset of the Indian two-wheeler buyer is transfixed towards the fuel-efficiency of the bike. Any increase in fuel prices has a psychological effect on the buyer.”
City-based two-wheeler dealers of Bajaj Auto and Hero Honda said there had been an increase in the number of enquiries for economy bikes soon after reports stated the government may hike fuel rates.
“The demand for our Discover 100 gathered pace over the last few days. People who were earlier keen on going for the Discover 135 are settling for the 100,” said a Pune-based Bajaj dealer.
According to estimates provided by HMSI, the average monthly run by a motorcycle owner is around 1,500 km. The average monthly fuel expenditure is around Rs 750. An increase of up to Rs 3 per litre in petrol price will mean an increase of up to Rs 50-60.
More than 4.5 million two-wheelers in the economy segment were sold last year, which is roughly half of the total of 9.37 million units sold during the last financial year in India.
However, Milind Bade, general manager (marketing and sales), two-wheelers, Bajaj Auto, said: “People are very sensitive towards fuel price hikes and we are expecting their decision to be influenced. However, we also believe that this change in preference will be momentary.”
A 100-110cc bike gives an average mileage of 75-80 km a litre under a mix of city and highway riding conditions, compared to just 40-50 km a litre or less by a 150cc and above bike. Although the fuel-efficient range is targeted more towards the interior of the country than urban centres, companies like Honda Motorcycle and Scooter India (HMSI), India’s fourth-biggest seller of two-wheelers, feel that a constant increase in fuel prices will change the buying pattern even in the cities.
Naresh Rattan, vice-president (marketing and sales), HMSI, said: “The overall mindset of the Indian two-wheeler buyer is transfixed towards the fuel-efficiency of the bike. Any increase in fuel prices has a psychological effect on the buyer.”
City-based two-wheeler dealers of Bajaj Auto and Hero Honda said there had been an increase in the number of enquiries for economy bikes soon after reports stated the government may hike fuel rates.
“The demand for our Discover 100 gathered pace over the last few days. People who were earlier keen on going for the Discover 135 are settling for the 100,” said a Pune-based Bajaj dealer.
According to estimates provided by HMSI, the average monthly run by a motorcycle owner is around 1,500 km. The average monthly fuel expenditure is around Rs 750. An increase of up to Rs 3 per litre in petrol price will mean an increase of up to Rs 50-60.
More than 4.5 million two-wheelers in the economy segment were sold last year, which is roughly half of the total of 9.37 million units sold during the last financial year in India.
However, Milind Bade, general manager (marketing and sales), two-wheelers, Bajaj Auto, said: “People are very sensitive towards fuel price hikes and we are expecting their decision to be influenced. However, we also believe that this change in preference will be momentary.”
M&M bets big on electric 2-wheelers
New Delhi: Sensing that the real spurt in growth in the electric vehicle segment in India is going to come from two-wheelers, utility major Mahindra & Mahindra (M&M) plans to focus more on developing and producing electric two-wheelers from its Nashik plant in Maharashtra. The company is looking at cutting down production of three-wheelers.
Following M&M’s takeover of Bangalore-based electric car company Reva Electric, the firm is likely to source technology from Reva to power its two-wheelers, according to industry sources. When contacted, Anoop Mathur, president of M&M's two-wheeler division, declined to comment “on market speculations.”
Industry sources said that M&M is committed to positioning itself as an important electric vehicle manufacturer; and following the takeover of Reva, it has both expertise and the knowhow in developing electric platforms for its various products.
M&M forayed into the two-wheeler segment in July 2008 after the company bought an 80% stake in the loss making two-wheeler company, Kinetic Motor Company. Anand Mahindra, vice-chairman and managing director of the Mahindra Group, had said, “There is strong evidence that two-wheelers are going to enjoy a renaissance.”
Currently, the approximate size of the electric-two wheeler market in China is 14 million, while in India, it is only around 0.1 million. “The electric two-wheeler market in India is bound to grow rapidly...it is in this segment that you are going to see a lot of traction in coming few years,” a Delhi- based auto analyst said.
Abdul Majeed, head of auto practice at PricewaterhouseCoopers, said electric-two wheelers could outgrow the electric four-wheelers. “In my assessment, electric two-wheelers should see a double-digit growth in coming years,” he said.
Following M&M’s takeover of Bangalore-based electric car company Reva Electric, the firm is likely to source technology from Reva to power its two-wheelers, according to industry sources. When contacted, Anoop Mathur, president of M&M's two-wheeler division, declined to comment “on market speculations.”
Industry sources said that M&M is committed to positioning itself as an important electric vehicle manufacturer; and following the takeover of Reva, it has both expertise and the knowhow in developing electric platforms for its various products.
M&M forayed into the two-wheeler segment in July 2008 after the company bought an 80% stake in the loss making two-wheeler company, Kinetic Motor Company. Anand Mahindra, vice-chairman and managing director of the Mahindra Group, had said, “There is strong evidence that two-wheelers are going to enjoy a renaissance.”
Currently, the approximate size of the electric-two wheeler market in China is 14 million, while in India, it is only around 0.1 million. “The electric two-wheeler market in India is bound to grow rapidly...it is in this segment that you are going to see a lot of traction in coming few years,” a Delhi- based auto analyst said.
Abdul Majeed, head of auto practice at PricewaterhouseCoopers, said electric-two wheelers could outgrow the electric four-wheelers. “In my assessment, electric two-wheelers should see a double-digit growth in coming years,” he said.
Honda to lose motorcycle race
Honda Motorcycle and Scooter India (HMSI) may lose market share to competitors like Hero Honda and Bajaj Auto in the domestic two-wheeler market in this financial year, as it struggles to meet surging demand, a top official said.
“Because of the production constraints, we are losing market share and even the Indian market is growing faster than expected,” said Shinji Aoyama, president and chief executive officer of HMSI, the wholly owned subsidiary of Japan’s Honda. The domestic two-wheeler market grew by over 26 per cent while HMSI grew slower at a tad over 19 per cent year-on-year (y-o-y) according to data from the society of Indian automobile manufacturers.
The Indian subsidiary of Honda Motorcycles had a 12.7 per cent market share in the domestic two-wheeler space in 2009-10. Affiliate Hero Honda, which is 26 per cent owned by Honda Motor Company is the market leader in India with over 46 per cent share of the two-wheeler market. Due to sudden surge in demand for scooters and motorcycles post rebound in the economy, HMSI produced 12.78 lakh units up 19.3 per cent y-o-y. This was almost 28,000 more than the production target for 2009-10. Despite this sales are failing to keep pace with the demand from customers for its bikes such as Unicorn and scooters such as Activa.
The company said it has a waiting period ranging from more than one month to three months on its popular models. Prospective customers have a waiting period of two-three months between booking and delivery for the country’s most popular ungeared scooter Honda Activa. For Honda Shine and Honda CB Unicorn motorcycles, the wait period is over one to two months in some parts of India.
“The demand for all these three models is high in the western and southern part of the country, which is leading to a demand supply gap,” said Aoyama. Abdul Majeed, auto practice, leader, PwC India said, “More the waiting period, more the company is likely to lose customers.”
In the present financial year, analysts forecast the two-wheeler market to accelerate its growth to 30 per cent y-o-y. “Even after adding one assembly line at Manesar in Haryana, which will up our capacity to 16 lakh units per year, we would not be able to meet the full growth in demand,” said Aoyama.
Customers in India, who are spoilt by the multitude of choice available in the market, are unlikely to wait months before a Honda product to be delivered, said industry experts. As a result they forecast that Hero Honda and Bajaj Auto the current leaders in the two wheeler market in India would take away market share from HMSI as they have invested in significant capacity to cater to the growing market, said analysts. Majeed also said that HMSI tended to flag its existing model line-up rather than constantly refreshing models which some of its competitors do. Angel Broking, auto analyst, Vaishali Jajoo said, “Bajaj Auto is poised to win back some of its lost market share over the next couple of years, with multiple new launches in the motorcycle segment.”
“HMSI continued with well performing models like Unicorn and Shine for a longer period. Whereas, customers always look for a product to be improved on the key parameters of better fuel efficiency, comfort and style. This is where Hero Honda, Bajaj Auto and TVS score,” added Majeed.
“HMSI focus is also on 125cc and above models. But the majority of volumes come from below 125cc-powered motorcycles. So HMSI should focus on that segment as well in addition to expanding its dealer network across the country, especially in rural areas,” he said. HMSI is now investing Rs 500 crore to set up a second factory at Tapukara in Rajasthan. The new plant is scheduled to become operational in the second half of 2011 with annual production capacity of six lakh units.
“Because of the production constraints, we are losing market share and even the Indian market is growing faster than expected,” said Shinji Aoyama, president and chief executive officer of HMSI, the wholly owned subsidiary of Japan’s Honda. The domestic two-wheeler market grew by over 26 per cent while HMSI grew slower at a tad over 19 per cent year-on-year (y-o-y) according to data from the society of Indian automobile manufacturers.
The Indian subsidiary of Honda Motorcycles had a 12.7 per cent market share in the domestic two-wheeler space in 2009-10. Affiliate Hero Honda, which is 26 per cent owned by Honda Motor Company is the market leader in India with over 46 per cent share of the two-wheeler market. Due to sudden surge in demand for scooters and motorcycles post rebound in the economy, HMSI produced 12.78 lakh units up 19.3 per cent y-o-y. This was almost 28,000 more than the production target for 2009-10. Despite this sales are failing to keep pace with the demand from customers for its bikes such as Unicorn and scooters such as Activa.
The company said it has a waiting period ranging from more than one month to three months on its popular models. Prospective customers have a waiting period of two-three months between booking and delivery for the country’s most popular ungeared scooter Honda Activa. For Honda Shine and Honda CB Unicorn motorcycles, the wait period is over one to two months in some parts of India.
“The demand for all these three models is high in the western and southern part of the country, which is leading to a demand supply gap,” said Aoyama. Abdul Majeed, auto practice, leader, PwC India said, “More the waiting period, more the company is likely to lose customers.”
In the present financial year, analysts forecast the two-wheeler market to accelerate its growth to 30 per cent y-o-y. “Even after adding one assembly line at Manesar in Haryana, which will up our capacity to 16 lakh units per year, we would not be able to meet the full growth in demand,” said Aoyama.
Customers in India, who are spoilt by the multitude of choice available in the market, are unlikely to wait months before a Honda product to be delivered, said industry experts. As a result they forecast that Hero Honda and Bajaj Auto the current leaders in the two wheeler market in India would take away market share from HMSI as they have invested in significant capacity to cater to the growing market, said analysts. Majeed also said that HMSI tended to flag its existing model line-up rather than constantly refreshing models which some of its competitors do. Angel Broking, auto analyst, Vaishali Jajoo said, “Bajaj Auto is poised to win back some of its lost market share over the next couple of years, with multiple new launches in the motorcycle segment.”
“HMSI continued with well performing models like Unicorn and Shine for a longer period. Whereas, customers always look for a product to be improved on the key parameters of better fuel efficiency, comfort and style. This is where Hero Honda, Bajaj Auto and TVS score,” added Majeed.
“HMSI focus is also on 125cc and above models. But the majority of volumes come from below 125cc-powered motorcycles. So HMSI should focus on that segment as well in addition to expanding its dealer network across the country, especially in rural areas,” he said. HMSI is now investing Rs 500 crore to set up a second factory at Tapukara in Rajasthan. The new plant is scheduled to become operational in the second half of 2011 with annual production capacity of six lakh units.
May auto sales at 14-year high, smooth ride ahead
Continuing their upward journey, automobile sales in May grew 30% at 12,08,851 units as compared to 9,29,917 units for the same month a year ago, according to data released by the Society of Indian Automobile Manufacturers (Siam) on Wednesday. This is the highest-ever sales jump the industry has recorded for May since 1996.
The numbers junked the largely-held notion that May typically records lower numbers compared to the rest of the year.
The director-general of SIAM Vishnu Mathur said the trend looked positive in the coming months as well and the high sales figures reflect the tenacity of the economy. “The per capita income has almost touched $1,000 and that’s a magical figure, which is the threshold for automobile demand,” he said.
Led by the country’s largest carmaker Maruti Suzuki, passenger car sales surged a whopping 30.5% to 1,48,481 units against 1,13,810 units last year. Maruti sold a total of 76,120 units in May against 62,878 units last year.
Hyundai Motor also saw marginal increase in sales at 27,151 units compared to 23,501 units last year. Tata Motors’ total sales rose to 18,618 units from 12,838 units in May 2009.
The two-wheeler segment spearheaded by motorcycle sales jumped 25.8% in May to 7,25,311 units against 5,76,537 units in the previous year, on the back of burgeoning economy and easier financing opportunities. The world’s largest two-wheeler maker by volumes Hero Honda Motors grew 11.74% to 4,01,320 units in May. Pune-based Bajaj Auto’s sales increased 68% to 1,91,726 units, while Chennai-based TVS Motor Company posted a 21.21% sales growth at 52,319 units in May. Sales of Honda Motorcycle & Scooter India (HMSI) jumped 52.24% to 55,110 units.
Scooter sales in May jumped 45.45% to 1,57,509 units against 1,08,291 units sold last year. HMSI’s scooter sales increased 28.03% at 76,980 units, while TVS Motor’s scooter sales jumped 40.19% in May to 30,567 units. Hero Honda’s scooter sales jumped 23,738 units, an increase by 61.21% from last year.
Despite the robustness in the auto sales, Mathur warned that if the monsoons turn weak, then it could spell gloom in the industry. He also pointed that rising raw material costs are a concern for industry. “If the government takes steps to control the money supply, then at some point of time interest rates will be under pressure. We have to track it very carefully,” he added.
Sales of trucks and buses, a barometer of economic activity, jumped 58% to 48,580 units in May from 30,803 units a year ago. Light commercial vehicle sales increased 37.94% in May to 25,688 units from 18,622 units. Medium and heavy commercial vehicle sales rose 87.93% to 22,892 units compared to 12,181 units in the same month last year.
Exports from the industry also touched a record of 1,79,130 units, the highest-ever in May. In May 2009, total exports stood at 1,19,749. Motorcycle exports grew at 49% at 1,16,832 units, while passenger car exports grew 10% at 32,649 units. “Sales in export markets were very impressive. It is despite the fact that the scrappage incentives offered in some European countries for passenger cars are over,” Mathur added
The numbers junked the largely-held notion that May typically records lower numbers compared to the rest of the year.
The director-general of SIAM Vishnu Mathur said the trend looked positive in the coming months as well and the high sales figures reflect the tenacity of the economy. “The per capita income has almost touched $1,000 and that’s a magical figure, which is the threshold for automobile demand,” he said.
Led by the country’s largest carmaker Maruti Suzuki, passenger car sales surged a whopping 30.5% to 1,48,481 units against 1,13,810 units last year. Maruti sold a total of 76,120 units in May against 62,878 units last year.
Hyundai Motor also saw marginal increase in sales at 27,151 units compared to 23,501 units last year. Tata Motors’ total sales rose to 18,618 units from 12,838 units in May 2009.
The two-wheeler segment spearheaded by motorcycle sales jumped 25.8% in May to 7,25,311 units against 5,76,537 units in the previous year, on the back of burgeoning economy and easier financing opportunities. The world’s largest two-wheeler maker by volumes Hero Honda Motors grew 11.74% to 4,01,320 units in May. Pune-based Bajaj Auto’s sales increased 68% to 1,91,726 units, while Chennai-based TVS Motor Company posted a 21.21% sales growth at 52,319 units in May. Sales of Honda Motorcycle & Scooter India (HMSI) jumped 52.24% to 55,110 units.
Scooter sales in May jumped 45.45% to 1,57,509 units against 1,08,291 units sold last year. HMSI’s scooter sales increased 28.03% at 76,980 units, while TVS Motor’s scooter sales jumped 40.19% in May to 30,567 units. Hero Honda’s scooter sales jumped 23,738 units, an increase by 61.21% from last year.
Despite the robustness in the auto sales, Mathur warned that if the monsoons turn weak, then it could spell gloom in the industry. He also pointed that rising raw material costs are a concern for industry. “If the government takes steps to control the money supply, then at some point of time interest rates will be under pressure. We have to track it very carefully,” he added.
Sales of trucks and buses, a barometer of economic activity, jumped 58% to 48,580 units in May from 30,803 units a year ago. Light commercial vehicle sales increased 37.94% in May to 25,688 units from 18,622 units. Medium and heavy commercial vehicle sales rose 87.93% to 22,892 units compared to 12,181 units in the same month last year.
Exports from the industry also touched a record of 1,79,130 units, the highest-ever in May. In May 2009, total exports stood at 1,19,749. Motorcycle exports grew at 49% at 1,16,832 units, while passenger car exports grew 10% at 32,649 units. “Sales in export markets were very impressive. It is despite the fact that the scrappage incentives offered in some European countries for passenger cars are over,” Mathur added
Vespa set for third coming in India
The iconic Vespa, a name once eponymous with the scooter in India till Bajaj usurped that honour, is poised to make another comeback in a new-age avatar, nearly 50 years after it first rolled into the country. The board of Piaggio & Co has okayed a plan to invest nearly e30 million over two years to establish a 1.5-lakh capacity plant that will produce a model specially developed for India, the world’s second-largest two-wheeler market, the Italian company said in a statement.
“A meeting chaired by Roberto Colaninno (chairman), the board of directors of Piaggio & C. SpA approved the strategic guidelines and industrial plan of a new Piaggio Group initiative in India for the production and sale of two-wheel vehicles, beginning with a Vespa LX 125 model,” the statement said. The first scooters are to roll out by the end of 2012, the company said.
Vespa first entered India in the late 1950s through a joint venture agreement with the Firodias who were then part of the Bajaj group. The Vespa 150 was an immediate success, spawning long waiting periods. The JV was terminated in 1971 in the wake of the Indira Gandhi government’s socialist policies.
The scooter was back in India again through a joint venture with LML in 1983. That partnership ended in 1999 after a protracted dispute with the
companies when LML bought back Piaggio’s stake in the company. Though Piaggio had revealed plans to relaunch Vespa as early as 2006, the scooter’s third coming is tinged with irony as the Bajajs, its first partner, has announced plans to exit the scooter segment to singularly focus on the motorcycle market. Even so, the market conditions are suited for Piaggio to foment strong growth.
“India’s two-wheeler market grew at an average annual rate of 7% between 2004 and 2009, with 8.4 million vehicles sold in 2009. The scooter segment accounted for 15% of the total market, with sales totalling 1.3 million units in 2009 and an estimated average annual growth of more than 13%,” Piaggio said.
Piaggio plans to produce up to 1.5 lakh units a year at its new facility in India. The company, which also makes the Apé range of three and four wheelers, sees revenues from the scooter venture to touch nearly e70 million in three years with sales of 1.1 lakh.
The new factory apart, another one run by Piaggio’s Indian offshoot could also produce Vespas. Piaggio Vehicles India Pvt Ltd, which operates an engine plant for two- and three-wheelers at Baramati in Maharashtra, has the capacity to manufacture Vespas, said managing director Ravi Chopra. “The current capacity for the engine plant is 1,00,000 per annum,” he said.
The Rs 360-crore engine plant has begun to make petrol engines of 125 and 150 cc, with plans to also produce 1 and 1.2 litre diesel engines for Piaggio’s three wheelers.
Piaggio also plans to establish boutique showrooms for selling the scooter. “This is an iconic brand with a long association with India and needs to be showcased accordingly,” said Mr Chopra. Piaggio’s plan to relaunch Vespa comes at a time of “extraordinary growth” of its Indian offshoot.
“From 35,000 vehicles produced and sold in 2003 to more than 182,000 in 2009... has established Piaggio as the leader in three-wheel light commercial vehicles in India,” the company said.
“A meeting chaired by Roberto Colaninno (chairman), the board of directors of Piaggio & C. SpA approved the strategic guidelines and industrial plan of a new Piaggio Group initiative in India for the production and sale of two-wheel vehicles, beginning with a Vespa LX 125 model,” the statement said. The first scooters are to roll out by the end of 2012, the company said.
Vespa first entered India in the late 1950s through a joint venture agreement with the Firodias who were then part of the Bajaj group. The Vespa 150 was an immediate success, spawning long waiting periods. The JV was terminated in 1971 in the wake of the Indira Gandhi government’s socialist policies.
The scooter was back in India again through a joint venture with LML in 1983. That partnership ended in 1999 after a protracted dispute with the
companies when LML bought back Piaggio’s stake in the company. Though Piaggio had revealed plans to relaunch Vespa as early as 2006, the scooter’s third coming is tinged with irony as the Bajajs, its first partner, has announced plans to exit the scooter segment to singularly focus on the motorcycle market. Even so, the market conditions are suited for Piaggio to foment strong growth.
“India’s two-wheeler market grew at an average annual rate of 7% between 2004 and 2009, with 8.4 million vehicles sold in 2009. The scooter segment accounted for 15% of the total market, with sales totalling 1.3 million units in 2009 and an estimated average annual growth of more than 13%,” Piaggio said.
Piaggio plans to produce up to 1.5 lakh units a year at its new facility in India. The company, which also makes the Apé range of three and four wheelers, sees revenues from the scooter venture to touch nearly e70 million in three years with sales of 1.1 lakh.
The new factory apart, another one run by Piaggio’s Indian offshoot could also produce Vespas. Piaggio Vehicles India Pvt Ltd, which operates an engine plant for two- and three-wheelers at Baramati in Maharashtra, has the capacity to manufacture Vespas, said managing director Ravi Chopra. “The current capacity for the engine plant is 1,00,000 per annum,” he said.
The Rs 360-crore engine plant has begun to make petrol engines of 125 and 150 cc, with plans to also produce 1 and 1.2 litre diesel engines for Piaggio’s three wheelers.
Piaggio also plans to establish boutique showrooms for selling the scooter. “This is an iconic brand with a long association with India and needs to be showcased accordingly,” said Mr Chopra. Piaggio’s plan to relaunch Vespa comes at a time of “extraordinary growth” of its Indian offshoot.
“From 35,000 vehicles produced and sold in 2003 to more than 182,000 in 2009... has established Piaggio as the leader in three-wheel light commercial vehicles in India,” the company said.
Honda Motor hopes new plant will cut wait time for popular models
Honda Motorcycles and Scooters India (HMSI) has said that with sales remaining strong through the year, it would now depend on its second upcoming plant in Rajasthan to help maintain its growth target of about 22 per cent for 2010-11.
Increased production would also help reduce the month-long waiting period for a few of its popular models, like the Activa scooter.
The fourth largest domestic two-wheeler company laid the foundation stone for its second plant at Tapukara on Monday. While the construction for the plant is to begin immediately, production would only start by the second half of 2011.
“We sold 12.7 lakh units in 2009-10 and this year, we aim to sell 15.5 lakh units. The new plant would help us to meet our growth targets,” said Mr Shinji Aoyama, President and CEO, HMSI.
HMSI's motorcycle sales in 2009-10 stood at 5.2 lakh units, while scooter sales were at at 7.5 lakh units. Mr Aoyama recently said that though scooters represent 60 per cent of sales, the split between scooters and motorcycles would become equal this year. Moreover, as motorcycle demand grows, it may even constitute a larger share of the company's sales by 2012.
Built over 240,000 sq.m taken from Honda Siel Cars's 1,000 acres in the region, the new plant would have an annual capacity of six lakh units in the initial phase. Officials said that there would also be an option of doubling the capacity to 12 lakh if there is high demand. Combined with a smaller increase in annual production at its first plant to 16 lakh units, HMSI would look to have a total annual capacity to produce 22 lakh units when the new plant also becomes operational.
Mr Fumihiko Ike, Managing Director and COO of Honda Asia and Oceania, said that the first plant has almost reached full capacity and the new plant is critical for HMSI's plans for India. “India is one of the most important markets for Honda. There is a promise of future growth,” he said.
HMSI has invested about Rs 500 crore for this new plant, which would involve fresh hiring of close to 3,000 employees.
Increased production would also help reduce the month-long waiting period for a few of its popular models, like the Activa scooter.
The fourth largest domestic two-wheeler company laid the foundation stone for its second plant at Tapukara on Monday. While the construction for the plant is to begin immediately, production would only start by the second half of 2011.
“We sold 12.7 lakh units in 2009-10 and this year, we aim to sell 15.5 lakh units. The new plant would help us to meet our growth targets,” said Mr Shinji Aoyama, President and CEO, HMSI.
HMSI's motorcycle sales in 2009-10 stood at 5.2 lakh units, while scooter sales were at at 7.5 lakh units. Mr Aoyama recently said that though scooters represent 60 per cent of sales, the split between scooters and motorcycles would become equal this year. Moreover, as motorcycle demand grows, it may even constitute a larger share of the company's sales by 2012.
Built over 240,000 sq.m taken from Honda Siel Cars's 1,000 acres in the region, the new plant would have an annual capacity of six lakh units in the initial phase. Officials said that there would also be an option of doubling the capacity to 12 lakh if there is high demand. Combined with a smaller increase in annual production at its first plant to 16 lakh units, HMSI would look to have a total annual capacity to produce 22 lakh units when the new plant also becomes operational.
Mr Fumihiko Ike, Managing Director and COO of Honda Asia and Oceania, said that the first plant has almost reached full capacity and the new plant is critical for HMSI's plans for India. “India is one of the most important markets for Honda. There is a promise of future growth,” he said.
HMSI has invested about Rs 500 crore for this new plant, which would involve fresh hiring of close to 3,000 employees.
Ho-hum thrum
Hindustan Times
Yamaha has turned on the heat in India over the past few years. Its premium, performance bikes such as the YZF-R15, Fazer and FZ helped restore the company’s image. These models also served to add some much-needed zing to the Yamaha stable.
So here’s Yamaha’s latest commuter model, the YBR 110. It’s a motorcycle that intends to lure the commuter bike buyer, which constitutes the largest chunk in the Indian market.
Looks
There’s not much on the outside that differentiates this Yamaha from its rivals or predecessors. Dated looking in comparison to such brilliantly styled rivals as Honda’s CB Twister, the YBR is built on an age-old platform. But its large proportions are a bonus in this segment, where rival commuter bikes often look and feel undernourished.
The YBR 110 comes with upmarket alloy wheels and deploys a bikini front fairing. Yamaha has done well to provide it with a powerful headlight, and the instruments are smartly turned out too. A speedometer and fuel gauge are prominently placed along with the regular array of warning lights.
The YBR is equipped with decent switches, including a pass-light flasher and engine killer. Riders will like its well shaped clutch and brake levers, and the soft and comfortable palm grips. The 13-litre fuel tank looks standard, capped with a bowler hat-style filler lid, but leads smoothly into the seat and broad flank panel region.
The tail fairing and brake warning light look bland. The YBR takes a step backwards by using an archaic tubular grab handle. It does win some brownie points for its smartly upturned exhaust and upmarket alloy footrest mounts. It comes with good paint lustre, neat fit and finish and excellent quality. Plastic and rubber components are all of a high standard.
Engine
The YBR 110 is powered by a button-started, 106 cc engine common to its earlier ancestors like the Libero. It’s a conventional, four-stroke, twin-valve and air-cooled power plant that mounts its single-cylinder vertically. The YBR 110 deploys a steel, twin-tube frame, with its engine bolted on just ahead of the tubular swingarm section. Air and fuel are monitored via a standard carburettor.
The YBR’s power output of 7.6 bhp at 7500 rpm is disappointing vis-à-vis the CB Twister, which outputs 9 bhp from an engine of displacing the same cubic capacity. The YBR’s maximum torque output is 0.8 kgm at 6000 rpm.
Ride
The YBR 110 delivers performance and power that was once acceptable on any Indian commuter bike. But now the Honda CB Twister makes it feel underpowered and outdated. Our fastest 0-60 kph time on the YBR 110 was 8.61 seconds, which compares poorly with the 7.13 seconds the Twister takes.
The YBR 110 does, however, come with a delightfully light clutch which is great for urban Indian conditions. The engine also stays silky smooth and vibe-free at almost all rpm. Power delivery is smooth, with each gear ratio thought out. The Yamaha also gets a smooth-shifting, four-speed gearbox that operates via a heel-and-toe shift lever. Top speed is a true 94 kph.
Suspension is conventional, with telescopic front forks and twin hydraulic shock absorbers at the rear. Both front and rear wheels are 18 inches in diameter.
The YBR comes with a plush seat that offers enough width and length, and provides the rider a well thought out, upright riding stance.
However, on the handling front, the YBR 110 does not match its rivals. While straightline stability is acceptable, cornering manners are iffy, and nowhere in the league of its arch rival, the Honda CB Twister. Ride quality though is good, with the suspension allowing a plush ride even when riding over poor road surfaces.
The YBR 110 comes with 130 mm drum brakes at both ends. Brake feel is adequate but not as good as any disc brake-equipped rival. We managed to stop the YBR from 60 kph in 21.1 metres.
The YBR 110 scores really well on the fuel economy front. This Yamaha is just as miserly with petrol as every commuter motorcycle has to be in order to succeed in a mileage-obsessed country like India. The bike delivered 56.3 kpl to a litre of fuel in real-world conditions. It improved on this figure a bit to provide 57.7 kpl when negotiating our highway test route.
Verdict
We come away from the Yamaha YBR 110 a tad disappointed. Yes, part of that has to do with tall expectations after Yamaha’s brilliant models in recent times but it’s more to do with the YBR failing to offer any real USP. The YBR comes with top-class quality, sound engineering and a really refined engine.
But that still doesn’t make up for its bland styling, average handling and dated feel. There’s nothing to make us take notice of it as a motorcycle that’s just been launched. The bottomline is that having experienced brilliant Yamaha bikes like the YZF-R15, Fazer and FZ, we know this Japanese manufacturer is capable of rolling out far better commuter motorcycles in India.
Yamaha has turned on the heat in India over the past few years. Its premium, performance bikes such as the YZF-R15, Fazer and FZ helped restore the company’s image. These models also served to add some much-needed zing to the Yamaha stable.
So here’s Yamaha’s latest commuter model, the YBR 110. It’s a motorcycle that intends to lure the commuter bike buyer, which constitutes the largest chunk in the Indian market.
Looks
There’s not much on the outside that differentiates this Yamaha from its rivals or predecessors. Dated looking in comparison to such brilliantly styled rivals as Honda’s CB Twister, the YBR is built on an age-old platform. But its large proportions are a bonus in this segment, where rival commuter bikes often look and feel undernourished.
The YBR 110 comes with upmarket alloy wheels and deploys a bikini front fairing. Yamaha has done well to provide it with a powerful headlight, and the instruments are smartly turned out too. A speedometer and fuel gauge are prominently placed along with the regular array of warning lights.
The YBR is equipped with decent switches, including a pass-light flasher and engine killer. Riders will like its well shaped clutch and brake levers, and the soft and comfortable palm grips. The 13-litre fuel tank looks standard, capped with a bowler hat-style filler lid, but leads smoothly into the seat and broad flank panel region.
The tail fairing and brake warning light look bland. The YBR takes a step backwards by using an archaic tubular grab handle. It does win some brownie points for its smartly upturned exhaust and upmarket alloy footrest mounts. It comes with good paint lustre, neat fit and finish and excellent quality. Plastic and rubber components are all of a high standard.
Engine
The YBR 110 is powered by a button-started, 106 cc engine common to its earlier ancestors like the Libero. It’s a conventional, four-stroke, twin-valve and air-cooled power plant that mounts its single-cylinder vertically. The YBR 110 deploys a steel, twin-tube frame, with its engine bolted on just ahead of the tubular swingarm section. Air and fuel are monitored via a standard carburettor.
The YBR’s power output of 7.6 bhp at 7500 rpm is disappointing vis-à-vis the CB Twister, which outputs 9 bhp from an engine of displacing the same cubic capacity. The YBR’s maximum torque output is 0.8 kgm at 6000 rpm.
Ride
The YBR 110 delivers performance and power that was once acceptable on any Indian commuter bike. But now the Honda CB Twister makes it feel underpowered and outdated. Our fastest 0-60 kph time on the YBR 110 was 8.61 seconds, which compares poorly with the 7.13 seconds the Twister takes.
The YBR 110 does, however, come with a delightfully light clutch which is great for urban Indian conditions. The engine also stays silky smooth and vibe-free at almost all rpm. Power delivery is smooth, with each gear ratio thought out. The Yamaha also gets a smooth-shifting, four-speed gearbox that operates via a heel-and-toe shift lever. Top speed is a true 94 kph.
Suspension is conventional, with telescopic front forks and twin hydraulic shock absorbers at the rear. Both front and rear wheels are 18 inches in diameter.
The YBR comes with a plush seat that offers enough width and length, and provides the rider a well thought out, upright riding stance.
However, on the handling front, the YBR 110 does not match its rivals. While straightline stability is acceptable, cornering manners are iffy, and nowhere in the league of its arch rival, the Honda CB Twister. Ride quality though is good, with the suspension allowing a plush ride even when riding over poor road surfaces.
The YBR 110 comes with 130 mm drum brakes at both ends. Brake feel is adequate but not as good as any disc brake-equipped rival. We managed to stop the YBR from 60 kph in 21.1 metres.
The YBR 110 scores really well on the fuel economy front. This Yamaha is just as miserly with petrol as every commuter motorcycle has to be in order to succeed in a mileage-obsessed country like India. The bike delivered 56.3 kpl to a litre of fuel in real-world conditions. It improved on this figure a bit to provide 57.7 kpl when negotiating our highway test route.
Verdict
We come away from the Yamaha YBR 110 a tad disappointed. Yes, part of that has to do with tall expectations after Yamaha’s brilliant models in recent times but it’s more to do with the YBR failing to offer any real USP. The YBR comes with top-class quality, sound engineering and a really refined engine.
But that still doesn’t make up for its bland styling, average handling and dated feel. There’s nothing to make us take notice of it as a motorcycle that’s just been launched. The bottomline is that having experienced brilliant Yamaha bikes like the YZF-R15, Fazer and FZ, we know this Japanese manufacturer is capable of rolling out far better commuter motorcycles in India.
Two-wheeler makers ride high in May
Riding on the robust trend in demand for two-wheelers, Hero Honda, Bajaj Auto, TVS Motors and Yamaha posted double-digit sales growth in May.
The country’s largest two-wheeler manufacturer, Hero Honda, today posted its highest monthly sales ever at nearly 4,36,000 units of motorcycles and gearless scooters.
Sales grew 14 per cent, compared to 3,82,000 units sold in the same month last year. Analysts tracking the company termed the growth substantial as the base was high.
Anil Dua, senior vice-president (marketing, sales and customer care), Hero Honda Motors, said: “We have maintained that the fundamentals of the domestic demand are very positive and that is why the contribution from all our models is significant. Consumer sentiments are looking very positive and with the monsoon expected to be near normal this year, we expect a robust rate of growth even this year.”
Bajaj Auto, the country’s second-biggest motorcycle manufacturer, today reported a 63 per cent rise in two-wheeler sales at 2,69,000 units, including exports, compared to 1,65,000 units sold in the same month last year.
The company did not provide separate numbers for domestic and exports. Total sales, including three-wheelers, rose 62 per cent to 2,99,000 units, as against 1,85,000 units.
The company’s newly-launched models — including Pulsar 135 and Discover 100 — drove its overall volumes. With a successful re-entry into the 100cc space, the company is planning to have more products on the same lines in the near future.
Chennai-based TVS Motor Company logged 27 per cent growth in domestic two-wheeler sales at 1,36,000 units, compared to 1,07,000 units in the corresponding month last year.
Sales of scooters, 23 per cent of the total two-wheeler sales, grew 42 per cent to 31,884 units, as against 22,486 units. Its recently-launched scooter, Wego, also boosted the sales.
Exports of two-wheelers grew 62 per cent to 18,046 units.
Meanwhile, total sales of India Yamaha Motor, the Indian subsidiary of Yamaha Motors, Japan, grew by 17 per cent to 25,033 units during May, as compared to 21,388 units in the same month last year.
Domestic sales were flat at 17,614 units, a rise of four per cent over 16,952 units sold a year earlier.
Koji Arai, director and chief sales officer, India Yamaha Motor, said: “We are particularly impressed with the response for the entry level YBR 110 and refreshed FZ16 and FZ-S, which have helped increase our sales. In domestic markets, we will continue to focus on dealer network
The country’s largest two-wheeler manufacturer, Hero Honda, today posted its highest monthly sales ever at nearly 4,36,000 units of motorcycles and gearless scooters.
Sales grew 14 per cent, compared to 3,82,000 units sold in the same month last year. Analysts tracking the company termed the growth substantial as the base was high.
Anil Dua, senior vice-president (marketing, sales and customer care), Hero Honda Motors, said: “We have maintained that the fundamentals of the domestic demand are very positive and that is why the contribution from all our models is significant. Consumer sentiments are looking very positive and with the monsoon expected to be near normal this year, we expect a robust rate of growth even this year.”
Bajaj Auto, the country’s second-biggest motorcycle manufacturer, today reported a 63 per cent rise in two-wheeler sales at 2,69,000 units, including exports, compared to 1,65,000 units sold in the same month last year.
The company did not provide separate numbers for domestic and exports. Total sales, including three-wheelers, rose 62 per cent to 2,99,000 units, as against 1,85,000 units.
The company’s newly-launched models — including Pulsar 135 and Discover 100 — drove its overall volumes. With a successful re-entry into the 100cc space, the company is planning to have more products on the same lines in the near future.
Chennai-based TVS Motor Company logged 27 per cent growth in domestic two-wheeler sales at 1,36,000 units, compared to 1,07,000 units in the corresponding month last year.
Sales of scooters, 23 per cent of the total two-wheeler sales, grew 42 per cent to 31,884 units, as against 22,486 units. Its recently-launched scooter, Wego, also boosted the sales.
Exports of two-wheelers grew 62 per cent to 18,046 units.
Meanwhile, total sales of India Yamaha Motor, the Indian subsidiary of Yamaha Motors, Japan, grew by 17 per cent to 25,033 units during May, as compared to 21,388 units in the same month last year.
Domestic sales were flat at 17,614 units, a rise of four per cent over 16,952 units sold a year earlier.
Koji Arai, director and chief sales officer, India Yamaha Motor, said: “We are particularly impressed with the response for the entry level YBR 110 and refreshed FZ16 and FZ-S, which have helped increase our sales. In domestic markets, we will continue to focus on dealer network
TVS posts 30 pc growth in May
Wednesday, 02 June 2010 08:50
New Delhi
Sustaining growth across all segments, Chennai-based TVS Motor Company today reported a 30.44 per cent increase in two-wheeler sales in May to 1, 54,667 units. The total two wheeler sales of the company grew 30 per cent in May 2010 from 118,574 units in May 2009 to 154,667 units.
Cumulative sales for the current financial year increased 29 per cent with sales of 299,356 units against 231,693 units in the comparable period of the previous year.
Domestic sales (two-wheeler) registered 27 per cent growth, increasing from 107,439 units in May 2009 to 136,621 units in May 2010.
While motorcycle sales of the company grew by 27 per cent in May 2010 with sales of 67,906 units compared to 53,495 units in the same month of the previous year. Scooters sales continued its spectacular run growing by 42 per cent from 22,486 units in May 2009 to 31,884 units in the May 2010.
Furthermore, maintaining an upward growth, the company's three wheeler business registered sales of 2313 units in May 2010 over 707units in May 2009.
Exports posted sizeable growth of 62 per cent during the month of May 2010 with sales of
18,046 two-wheelers against 11,135 units in May 2009.
New Delhi
Sustaining growth across all segments, Chennai-based TVS Motor Company today reported a 30.44 per cent increase in two-wheeler sales in May to 1, 54,667 units. The total two wheeler sales of the company grew 30 per cent in May 2010 from 118,574 units in May 2009 to 154,667 units.
Cumulative sales for the current financial year increased 29 per cent with sales of 299,356 units against 231,693 units in the comparable period of the previous year.
Domestic sales (two-wheeler) registered 27 per cent growth, increasing from 107,439 units in May 2009 to 136,621 units in May 2010.
While motorcycle sales of the company grew by 27 per cent in May 2010 with sales of 67,906 units compared to 53,495 units in the same month of the previous year. Scooters sales continued its spectacular run growing by 42 per cent from 22,486 units in May 2009 to 31,884 units in the May 2010.
Furthermore, maintaining an upward growth, the company's three wheeler business registered sales of 2313 units in May 2010 over 707units in May 2009.
Exports posted sizeable growth of 62 per cent during the month of May 2010 with sales of
18,046 two-wheelers against 11,135 units in May 2009.
Hero Honda raises prices by up to Rs 1,000
June 01, 2010 17:42 IST
The country's largest two-wheeler maker, Hero Honda on Tuesday said it has increased the prices of its products by up to Rs 1,000 with immediate effect due to rising input costs.
"We have not taken any price hike due to commodity costs since August, 2008, but the burden has increased very much recently and we are passing it partially to the consumers," Hero Honda Senior Vice-President (Marketing and Sales) Anil Dua told PTI.
The company has hiked the prices of different models by either Rs 500 or Rs 1,000. While its Hunk and CBZ will be costlier by Rs 1,000, most other models will be dearer by Rs 500, he added.
However, there will be no hike in the prices of its flagship model, Splendor, and premium bike Karizma. "Steel prices have risen very much in the last couple of months and tyre prices are also moving upwards. Rubber prices are really hardening," Dua said.
He, however, said the company is expecting the situation to improve in the coming months.
The country's largest two-wheeler maker, Hero Honda on Tuesday said it has increased the prices of its products by up to Rs 1,000 with immediate effect due to rising input costs.
"We have not taken any price hike due to commodity costs since August, 2008, but the burden has increased very much recently and we are passing it partially to the consumers," Hero Honda Senior Vice-President (Marketing and Sales) Anil Dua told PTI.
The company has hiked the prices of different models by either Rs 500 or Rs 1,000. While its Hunk and CBZ will be costlier by Rs 1,000, most other models will be dearer by Rs 500, he added.
However, there will be no hike in the prices of its flagship model, Splendor, and premium bike Karizma. "Steel prices have risen very much in the last couple of months and tyre prices are also moving upwards. Rubber prices are really hardening," Dua said.
He, however, said the company is expecting the situation to improve in the coming months.
Bajaj Auto gets Chinese patent for ExhausTec technology
1 Jun 2010, 2222 hrs IST,PTI
NEW DELHI: Two-wheeler major Bajaj Auto on Tuesday said its 'ExhausTec' technology, used to improve power in single cylinder four stroke engines,
has been granted a patent in China.
The company has been using the technology in its bikes since 2004 and already has the patent for it in India, Europe, Sri Lanka, Mexico, Bangladesh, Costa Rica, Iran and Malaysia, Bajaj Auto Ltd (BAL) said in a statement.
"The Chinese State Intellectual Property Office (SIPO) granted Bajaj Auto patent rights for its invention 'ExhausTEC' by patent number 'ZL 200580025898.7' dated April 14, 2010," the company said.
BAL has commercialised the technology in various models, including the Avenger, Pulsar, Discover and Platina.
NEW DELHI: Two-wheeler major Bajaj Auto on Tuesday said its 'ExhausTec' technology, used to improve power in single cylinder four stroke engines,
has been granted a patent in China.
The company has been using the technology in its bikes since 2004 and already has the patent for it in India, Europe, Sri Lanka, Mexico, Bangladesh, Costa Rica, Iran and Malaysia, Bajaj Auto Ltd (BAL) said in a statement.
"The Chinese State Intellectual Property Office (SIPO) granted Bajaj Auto patent rights for its invention 'ExhausTEC' by patent number 'ZL 200580025898.7' dated April 14, 2010," the company said.
BAL has commercialised the technology in various models, including the Avenger, Pulsar, Discover and Platina.
HMSI targets over 20%sales jump in 2010-11
HMSI targets over 20%sales jump in 2010-11
Press Trust of India / Tapukara (rajasthan) May 31, 2010, 16:36 IST
Two-wheeler maker Honda Motorcycle & Scooter India (HMSI) today said it is expecting its sales to grow by over 20 per cent this fiscal.
"HMSI sold 12.7 lakh units last fiscal and this fiscal our target is to sell 15.5 lakh units," HMSI President and CEO Shinji Aoyama told reporters at the foundation stone laying ceremony of its second manufacturing facility here.
In 2009-10, HMSI's motorcycle sales were at 5.2 lakh units and scooter sales stood at 7.5 lakh units. The company is expecting equal contributions this financial year from both the segments.
Early this month, Aoyama had said that its bike sales will overtake scooter sales in the country next fiscal and apart from existing models, new launches will spur growth in the motorcycle segment.
The wholly-owned subsidiary of Japanese auto giant Honda is targeting to export 1.15 lakh during this fiscal compared to 80,000 units in 2009-10.
It exports motorcycles to over 40 countries, including Latin America, Europe and other neighbouring nations.
HMSI's second manufacturing facility will be set up at an initial investment of Rs 500 crore.
"We have reached our peak capacity at Manesar plant, so we are starting our second plant at Tapukara. Mass production in the second plant will start by the second half of 2011," Aoyama said, adding that the company has not yet zeroed in on the model range to be manufactured at the plant.
The new 2.4 lakh sq metre facility in Rajasthan will have an initial capacity to produce six lakh units per annum. Depending on market demand, the output can be expanded later up to 12 lakh units annually and the investment can go up to Rs 1,100 crore.
"It is a significant milestone for Honda's two-wheeler business in India. India is one of the most important markets for future growth," Honda Motor Corporation Chief Operating Officer (Asia and Ocenia) Fumihiko Ike said.
Once fully operational, the plant is expected give employment to about 3,000 people.
The company's current plan at Manesar has an anvil capacity of 15.5 lakh units, which will be expanded to 16 lakh units by next year. When its second plan goes on stream, HMSI's total production capacity will be 22 lakh units per annum.
Press Trust of India / Tapukara (rajasthan) May 31, 2010, 16:36 IST
Two-wheeler maker Honda Motorcycle & Scooter India (HMSI) today said it is expecting its sales to grow by over 20 per cent this fiscal.
"HMSI sold 12.7 lakh units last fiscal and this fiscal our target is to sell 15.5 lakh units," HMSI President and CEO Shinji Aoyama told reporters at the foundation stone laying ceremony of its second manufacturing facility here.
In 2009-10, HMSI's motorcycle sales were at 5.2 lakh units and scooter sales stood at 7.5 lakh units. The company is expecting equal contributions this financial year from both the segments.
Early this month, Aoyama had said that its bike sales will overtake scooter sales in the country next fiscal and apart from existing models, new launches will spur growth in the motorcycle segment.
The wholly-owned subsidiary of Japanese auto giant Honda is targeting to export 1.15 lakh during this fiscal compared to 80,000 units in 2009-10.
It exports motorcycles to over 40 countries, including Latin America, Europe and other neighbouring nations.
HMSI's second manufacturing facility will be set up at an initial investment of Rs 500 crore.
"We have reached our peak capacity at Manesar plant, so we are starting our second plant at Tapukara. Mass production in the second plant will start by the second half of 2011," Aoyama said, adding that the company has not yet zeroed in on the model range to be manufactured at the plant.
The new 2.4 lakh sq metre facility in Rajasthan will have an initial capacity to produce six lakh units per annum. Depending on market demand, the output can be expanded later up to 12 lakh units annually and the investment can go up to Rs 1,100 crore.
"It is a significant milestone for Honda's two-wheeler business in India. India is one of the most important markets for future growth," Honda Motor Corporation Chief Operating Officer (Asia and Ocenia) Fumihiko Ike said.
Once fully operational, the plant is expected give employment to about 3,000 people.
The company's current plan at Manesar has an anvil capacity of 15.5 lakh units, which will be expanded to 16 lakh units by next year. When its second plan goes on stream, HMSI's total production capacity will be 22 lakh units per annum.
Hot wheels hit supply woes
Hot wheels hit supply woes
Pankaj Doval, TNN, May 31, 2010, 01.17am IST
NEW DELHI: Dinesh Prabhakar faces a strange predicament. A young corporate executive who has tasted success early, Prabhakar wants to announce his arrival in style. In his late twenties, Prabhakar wants to match his success with a stylish and powerful set of wheels — a Toyota Fortuner that costs Rs 20 lakh. But despite having the money, he still can’t have it.
It reflects the rapidly changing dynamics of the Indian auto industry. What was once a solely demand-driven business is gradually witnessing a new phenomenon — long waiting periods. It’s almost as if the industry has gone back to the pre-liberalisation days of waiting period on cars. Marketing heads of car companies often complain in private about how they get calls from offices of ministers and bureaucrats seeking early delivery of cars. “But it is not just possible, we do not have enough cars to match the demand,” says one of them
in exasperation.
For the record — Toyota has stopped accepting bookings for the Fortuner SUV since January. The bookings opened only for a few weeks and remain shut even now. “We just don’t have enough production to match the demand that has been phenomenal and beyond our expectation. The bookings have been closed as we do not want people to wait for delivery endlessly after paying hefty booking amounts,” says Sandeep Singh, deputy managing director (marketing) at Toyota Kirloskar Motors.
Currently, the waiting list on the Fortuner runs for over three months and the company hopes to start accepting fresh bookings only around July, by when it hopes to trim the backlog substantially. “We have ramped up the production capacity of the Fortuner and are currently doing around 950 cars monthly. But even this is not enough,” Singh adds.
And Fortuner is not the only vehicle on the coveted ‘in the queue’ list. Maruti’s Swift and Dzire are among the vehicles that have enjoyed long waiting periods for years now, and so are some of the new ones that have hit the market recently. These include Volkswagen’s Polo, Ford’s Figo and the Beat compact and Cruze sedan from General Motors.
“The demand has been overwhelming in the market, especially for many of the newer models that were keenly awaited. It has been more than what we anticipated,” says Mayank Pareek, managing executive officer (marketing and sales), at Maruti Suzuki.
Maruti has a waiting list on some of its hot sellers for a long time even as it tries to push the sagging models. While certain variants of the Swift and Dzire carry waiting period of around two months, the company’s new multi-utility vehicle Eeco — that was priced attractively under Rs 3 lakh — also has added a waiting list on it.
“The wait on the Eeco is around 4-5 months now. While we had initially expected to sell 2,000-3,000 units monthly, but the demand has been around 6,000 units, which is much more above the estimates,” Pareek says.
GM’s marketing head Ankush Arora says he faces a similar situation on the Beat and Cruze, the new models launched by the company. And the waiting is not confined only to cars. Royal Enfield’s Classic500 model —that was launched in India in November last year after making its debut in the European markets about a year back — is one such hot seller in the two-wheeler space. The bike, which carries a Rs 1.25-lakh price tag, has been on the wish list of youngsters, biking enthusiasts and celebrities, leaving manufacturer Royal Enfield with a long waiting list.
“The waiting list for the Classic500 model is around 6-8 months. And even as we try and boost production, we have our own limitations as the bike carries a number of specially painted components that take time to be delivered,” a senior company official said.
A senior company official also pointed out that the model has been a hit for the company from the word go and received as many as 1,000 bookings in just two weeks of its launch. The company has made over 5,000 deliveries since November and averages around 1,000 in production monthly, which it plans to increase now.
Though long booking periods mean high demand, auto makers are not happy. “It is not good and we are not at all pleased with the situation. A customer should get the delivery of a vehicle within 2-3 days of booking. We are here to sell a car and not just to make bookings,” Maruti's Pareek says.
Most marketers say that a long waiting lists also pose a threat as buyers may not be ready to queue up for a model but may switch over to the one available off-the-shelf. “It is not healthy and we not only run the risk of losing a customer but also invoking customer dissatisfaction,” GM's Arora says.
He says that a waiting list running over 20-25 days is not ideal and can hurt the brand as well as the company. “We have been pushing for higher production to catch up with the backlog fast,” Arora adds. Ford, which has around a month’s waiting on the Figo, is all set to add a new production shift at its factory to add to the churn-out and keep cars ready at showrooms.
Analysts say that a revival in the car market and a general tendency to upgrade to newer models has been among the reasons fuelling the waiting lists and the sudden demand.
There have been upgrades even within segments, like the compact car market. Marketers estimate that 58% customers of small cars change models within five years and have been upgrading from the low-end compacts to the high-end ones. This practice is only fuelling demand and affecting supply.
There was a time when Premier Padmini cars and Bajaj scooters were available at a hefty premium because of the long waiting list. But that was because of production controls imposed by the government. But in this day and age when there are no production controls, it's probably only a faulty assumption of demand that has created shortage of certain models in the market.
Pankaj Doval, TNN, May 31, 2010, 01.17am IST
NEW DELHI: Dinesh Prabhakar faces a strange predicament. A young corporate executive who has tasted success early, Prabhakar wants to announce his arrival in style. In his late twenties, Prabhakar wants to match his success with a stylish and powerful set of wheels — a Toyota Fortuner that costs Rs 20 lakh. But despite having the money, he still can’t have it.
It reflects the rapidly changing dynamics of the Indian auto industry. What was once a solely demand-driven business is gradually witnessing a new phenomenon — long waiting periods. It’s almost as if the industry has gone back to the pre-liberalisation days of waiting period on cars. Marketing heads of car companies often complain in private about how they get calls from offices of ministers and bureaucrats seeking early delivery of cars. “But it is not just possible, we do not have enough cars to match the demand,” says one of them
in exasperation.
For the record — Toyota has stopped accepting bookings for the Fortuner SUV since January. The bookings opened only for a few weeks and remain shut even now. “We just don’t have enough production to match the demand that has been phenomenal and beyond our expectation. The bookings have been closed as we do not want people to wait for delivery endlessly after paying hefty booking amounts,” says Sandeep Singh, deputy managing director (marketing) at Toyota Kirloskar Motors.
Currently, the waiting list on the Fortuner runs for over three months and the company hopes to start accepting fresh bookings only around July, by when it hopes to trim the backlog substantially. “We have ramped up the production capacity of the Fortuner and are currently doing around 950 cars monthly. But even this is not enough,” Singh adds.
And Fortuner is not the only vehicle on the coveted ‘in the queue’ list. Maruti’s Swift and Dzire are among the vehicles that have enjoyed long waiting periods for years now, and so are some of the new ones that have hit the market recently. These include Volkswagen’s Polo, Ford’s Figo and the Beat compact and Cruze sedan from General Motors.
“The demand has been overwhelming in the market, especially for many of the newer models that were keenly awaited. It has been more than what we anticipated,” says Mayank Pareek, managing executive officer (marketing and sales), at Maruti Suzuki.
Maruti has a waiting list on some of its hot sellers for a long time even as it tries to push the sagging models. While certain variants of the Swift and Dzire carry waiting period of around two months, the company’s new multi-utility vehicle Eeco — that was priced attractively under Rs 3 lakh — also has added a waiting list on it.
“The wait on the Eeco is around 4-5 months now. While we had initially expected to sell 2,000-3,000 units monthly, but the demand has been around 6,000 units, which is much more above the estimates,” Pareek says.
GM’s marketing head Ankush Arora says he faces a similar situation on the Beat and Cruze, the new models launched by the company. And the waiting is not confined only to cars. Royal Enfield’s Classic500 model —that was launched in India in November last year after making its debut in the European markets about a year back — is one such hot seller in the two-wheeler space. The bike, which carries a Rs 1.25-lakh price tag, has been on the wish list of youngsters, biking enthusiasts and celebrities, leaving manufacturer Royal Enfield with a long waiting list.
“The waiting list for the Classic500 model is around 6-8 months. And even as we try and boost production, we have our own limitations as the bike carries a number of specially painted components that take time to be delivered,” a senior company official said.
A senior company official also pointed out that the model has been a hit for the company from the word go and received as many as 1,000 bookings in just two weeks of its launch. The company has made over 5,000 deliveries since November and averages around 1,000 in production monthly, which it plans to increase now.
Though long booking periods mean high demand, auto makers are not happy. “It is not good and we are not at all pleased with the situation. A customer should get the delivery of a vehicle within 2-3 days of booking. We are here to sell a car and not just to make bookings,” Maruti's Pareek says.
Most marketers say that a long waiting lists also pose a threat as buyers may not be ready to queue up for a model but may switch over to the one available off-the-shelf. “It is not healthy and we not only run the risk of losing a customer but also invoking customer dissatisfaction,” GM's Arora says.
He says that a waiting list running over 20-25 days is not ideal and can hurt the brand as well as the company. “We have been pushing for higher production to catch up with the backlog fast,” Arora adds. Ford, which has around a month’s waiting on the Figo, is all set to add a new production shift at its factory to add to the churn-out and keep cars ready at showrooms.
Analysts say that a revival in the car market and a general tendency to upgrade to newer models has been among the reasons fuelling the waiting lists and the sudden demand.
There have been upgrades even within segments, like the compact car market. Marketers estimate that 58% customers of small cars change models within five years and have been upgrading from the low-end compacts to the high-end ones. This practice is only fuelling demand and affecting supply.
There was a time when Premier Padmini cars and Bajaj scooters were available at a hefty premium because of the long waiting list. But that was because of production controls imposed by the government. But in this day and age when there are no production controls, it's probably only a faulty assumption of demand that has created shortage of certain models in the market.
Yamaha turns to rural areas to continue growth
30 May 2010, 1140 hrs IST,PTI
NEW DELHI: Two-wheeler maker Yamaha today said it aims to double sales in rural market within the next five years and plans to add about 1,000 outlets in sub-urban and remote areas of the country by 2014.
The wholly-owned Indian subsidiary of the Japanese giant Yamaha, which sold 2.2 lakh units in India in 2009, is also expecting its total sales to increase by up to 30 per cent in this year.
"We have so far seen good sales in urban areas, mainly in big cities, due to our image as a premium bike maker. Now, to continue with the growth, and even to further accelerate, we will focus to strengthen our presence in rural areas," India Yamaha Motor National Business Head Pankaj Dubey told PTI.
The rural two-wheeler market is not penetrated enough and hence offers huge growth potential, he added.
"Currently, about 15 per cent of our total sales come from rural areas and we are targeting to increase it to 30 per cent by 2014," Dubey said.
To meet its target, the company is also expanding its sales outlet and is planning to open thousands of dealerships with smaller sizes, called 'sub-dealer', in rural areas.
"Currently, we have about 500 sub-dealers and we will add another 1,000 such outlets by 2014," Dubey said.
The company, at present, also has 430 standard dealerships across the country and it will add about 20 more such outlets in the next five years, he added.
Dubey, however, said the firm will never enter into the production of low-cost bikes, targeting the rural markets.
"We are not entering into the cheap bike (category). Yamaha is a niche and premium bike maker and it will remain like that...Certain sections of the rural areas are now fed up with cheap bikes and they now want some good quality bikes like R15, Fazer and FZ," he added.
India Yamaha's four prominent motorcycles -- FZ16, FZS, Fazer and YZF-R15 -- are priced between Rs 65,000 and Rs 98,000.
When asked about the company's target for 2010, Dubey said it is expecting 25-30 per cent increase in sales.
He said the company sold 2.2 lakh units in 2009. The Indian motorcycle market witnessed over 25 per cent growth during the last fiscal at 73,41,139 units.
NEW DELHI: Two-wheeler maker Yamaha today said it aims to double sales in rural market within the next five years and plans to add about 1,000 outlets in sub-urban and remote areas of the country by 2014.
The wholly-owned Indian subsidiary of the Japanese giant Yamaha, which sold 2.2 lakh units in India in 2009, is also expecting its total sales to increase by up to 30 per cent in this year.
"We have so far seen good sales in urban areas, mainly in big cities, due to our image as a premium bike maker. Now, to continue with the growth, and even to further accelerate, we will focus to strengthen our presence in rural areas," India Yamaha Motor National Business Head Pankaj Dubey told PTI.
The rural two-wheeler market is not penetrated enough and hence offers huge growth potential, he added.
"Currently, about 15 per cent of our total sales come from rural areas and we are targeting to increase it to 30 per cent by 2014," Dubey said.
To meet its target, the company is also expanding its sales outlet and is planning to open thousands of dealerships with smaller sizes, called 'sub-dealer', in rural areas.
"Currently, we have about 500 sub-dealers and we will add another 1,000 such outlets by 2014," Dubey said.
The company, at present, also has 430 standard dealerships across the country and it will add about 20 more such outlets in the next five years, he added.
Dubey, however, said the firm will never enter into the production of low-cost bikes, targeting the rural markets.
"We are not entering into the cheap bike (category). Yamaha is a niche and premium bike maker and it will remain like that...Certain sections of the rural areas are now fed up with cheap bikes and they now want some good quality bikes like R15, Fazer and FZ," he added.
India Yamaha's four prominent motorcycles -- FZ16, FZS, Fazer and YZF-R15 -- are priced between Rs 65,000 and Rs 98,000.
When asked about the company's target for 2010, Dubey said it is expecting 25-30 per cent increase in sales.
He said the company sold 2.2 lakh units in 2009. The Indian motorcycle market witnessed over 25 per cent growth during the last fiscal at 73,41,139 units.