Bajaj Auto is catching up with market leader Hero Honda in terms of sales figures of the bread and butter 100 cc segment of the Indian motorcycle market. Bajaj Auto has over the past few months taken a major chunk out of Hero Honda’s market share in the 100 cc space by slashing it from 69% to 64%.

The major reason for Hero Honda slowly losing its dominance in the 100 cc space is the tremendous success of Bajaj’s Discover 100 cc motorcycle. The sales of the Discover 100 have been going through the roof ever since it was launched in August 2009.

S Sridhar, CEO, Two-Wheeler Division, Bajaj Auto Limited -

Our company’s 100cc market share rose by 6% to 23% in the October-May period, while Hero Honda’s share in the 100cc segment fell from 69% to 64%. Even in terms of profitability, Bajaj has made rapid strides. Our target is to bring down the share of entry level (lowest priced bikes) in our portfolio to 16% by the end of this fiscal against 42% in 2008-09. This will ensure better profitability.

It looks like as if Hero Honda’s downward slide in terms of sales figures in the 100 cc segment could continue over the next few months, with competition such as Bajaj Auto, TVS Motor, Honda Motorcycle and Scooter India and India Yamaha Motor, all wanting in on market share of the lucrative 100 cc segment of the Indian motorcycle market.

Source – DNA