Honda Motorcycle and Scooter India – HMSI has been increasing market share at a very fast pace. This despite the fact that they are the newest players in the big league.
Hero MotoCorp Brand Ambassador and Southern Superstar Allu Arjun unveils new Hero Xtreme Sports and new Hero Passion PRO in Hyderabad earlier today.
HMSI market share has been steadily on the rise. In FY 5015, their share rose to 27% as against 24% a year earlier. On the other hand, Hero MotoCorp market share has been declining continuously after the split. From 45% market share in FY12, their share for FY15 is down to 41.3%.
HMSI has plans to topple Hero MotoCorp and become the No 1 two wheeler manufacturer in the world.
Not only this, for the first time since split, HMSI has overtaken Hero MotoCorp in 8 markets. These are Delhi, Maharashtra, two Union Territories and four more states. Together, these 8 markets constitute 55% of the total two wheeler sales in India. Last year, these 8 markets accounted for 16 million units two wheelers! The number is expected to increase this year.
Hero MotoCorp has however continued to stay in the lead in states such as Uttar Pradesh, Bihar, Uttarakhand, Rajasthan and other north eastern states, while TVS Motors has seen increased demand in Tamil Nadu.
HMSI latest launch is 110cc Livo for the stylish commuter segment. Their next launch is on 4th August – CBR650F.
Not many expected HMSI to grow so fast. But it is not Hero MotoCorp’s share that they have eaten into, its Bajaj Auto. A leader in the two wheeler space, today Bajaj Auto has slipped to number 4 in India. This is mostly due to their decision to stop operating in the scooter segment, and only concentrate in the motorcycle segment. Co-incidentally, after they decided to quit scooter segment, the segment has shown more promise than the motorcycle segment.
Bajaj Auto market share has slipped from 20% in FY11 to 11% in FY15. Market share in states of Gujarat, Maharashtra, Andhra Pradesh, Kerala and Tamil Nadu have even dropped to single digits. With the recent launch of the aggressively priced CT100 motorcycle, Bajaj Auto hopes to gain back its lost market share. But, that seems difficult.