Posts Tagged ‘Hero Honda’

Report – Bajaj’s targets for overseas markets

Bajaj Discover 100

Bajaj Auto Limited (BAL), the country’s second largest two-wheeler manufacturer is targeting sales volumes of 70 % from its overseas operations in the years ahead. The company plans to take the fight to Honda Motor Company in the markets of Asia, Africa and Latin America.

The company which had only a 30 % contribution from sales in overseas markets last year, aims to reach the set target of 70 % over the coming years. The company will be focusing mainly on its motorcycles in order to achieve its target.

Rajiv Bajaj, Managing Director, Bajaj Auto -

It will take us several years, but it only shows how much headroom there is for Bajaj even if we only focus on motorcycles

Bajaj also plans on tripling its current global market share of 10 % to 30 % in the coming years by leveraging its current partnerships with KTM and Kawasaki. The company is also looking to venture into new partnerships and Joint Venture (JV) agreements, in order to gain a leg up on market share currently held by rivals such as Honda Motor Company and Chinese two-wheeler manufacturers.

Bajaj has also set its eyes on achieving an annual sales figure of 5 million units by the year 2012. The company had sold 2.8 million vehicles during the financial year 2009-2010. Bajaj’s rival Honda had an annual sales figure of 9.63 million units, which also includes the sales figures of Hero Honda Motors Limited, the country’s largest two-wheeler manufacturer and Honda’s sister concern in which Honda owns a 26 % stake.

Bajaj can definitely achieve the targets which it has set, considering that it has already started snapping at market leader Hero Honda’s heels with its 100 cc Discover now having become the second largest selling bike in India in a span of just 11-months since its launch. The Discover has also enabled the company to eat into some of Hero Honda’s market share and re-affirm its position as a strong contender for Hero Honda’s position as the country’s and world’s largest two-wheeler manufacturer.

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Entry posted on July 8th, 2010 and filed under Bajaj

Bajaj catching up fast with Hero Honda 100cc bikes

Bajaj Discover 100

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.

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Entry posted on June 18th, 2010 and filed under Bajaj

Hero Honda is Highest Ad Spender in 2009

TV Ad Spendings 2009

According to a report published in Hindu Business Line, Hero Honda was the highest spending two-wheeler manufacturer in terms of advertisements in the year 2009, followed closely by TVS Motor and Bajaj Auto. Hero Honda had a 41% share of TV advertisements, while TVS Motor and Bajaj Auto had TV advertisement shares of 27% and 13% respectively.

Coming to the brand ambassador side of the two-wheeler advertising scene in India, Hrithik Roshan leaves the others biting the dust in terms of the percentage share of endorsements with a 59% share of the advertising space. Follwing Hrithik in the hierarchy are Priyanka Chopra and MS Dhoni with a 20% and 10% market share of the Indian two-wheeler advertising space.

TV Ad Spendings 2009

I don’t know really as to how much of an impact does having a brand ambassador for a particular product have in the market in terms of success or failure of the product in the market, but the fact that the above mentioned statistics reveal is that Indian two-wheeler manufacturers are ready to spend and splurge heavily on advertising and marketing of a product and do whatever it takes to ensure that their product is a success in the market.

Below listed is the TV advertisement rankings of the new two-wheelers launched in the year 2009

New Two Wheeler Ad Rankings

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Entry posted on June 11th, 2010 and filed under Hero Honda

Four all new products from Hero Honda in next 18 months

Karizma See-throughHero Honda is gearing up to fight the tough competition in the days to come with 4 all new products

Seeing the competition from various two wheeler manufacturers in the country, the largest two wheeler manufacturer from India, Hero Honda, does not want to be left behind and in order to stay on top the company is planning to launch 13 new products over the next year and a half.

These 13 new products would consist of 4 all new products with 4 major variants and 5 minor variants, while the focus will be on premium segment the company will also be working to keep up its hold on the mass segment. The company will also has scooters as one of the other focus area.

With these new products lined up for the launch in the next 12-18 months the company is also targeting the sales figure of 5.6 million units for the next fiscal and an overall growth of 15 per cent.

It looks like Hero Honda is taking up the competition in a serious mood and these new 4 product clearly justifies this fact. We all know that Hero Honda has the reliability which an average Indian Commuter biker wants but personally I’m yet to see something solid from the company in the premium segment. The Karizma ZMR the most hyped bike of last year disappointed a many. I would also like to see something exciting from Hero Honda in commuter segment like Honda’s CB Twister.

So lets wait and hope that this time something more exciting come out from Hero Honda’s stable.

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Entry posted on March 27th, 2010 and filed under Hero Honda

Hero Honda working on a low cost motorcycle with Honda for India

The Hero Honda CD100 was one such low-cost bike for India

In order to be differentiators in the motorcycle world, Hero Honda is working on something similar to what Tata Motors did in the four-wheeler segment. Tata gave us the low cost car Nano and Hero-Honda is working on low cost motorcycle.

This move from Hero-Honda will not only create in new segment in the two-wheeler industry in our country but will also help them generate more revenues.

The cheapest bike in India costs somewhere around 30k but this one from Hero-Honda goes even further down and will cost somewhere around the price tag of Rs.20,000.

In order to deliver such product Hero-Honda is likely to use frugal engineering’ techniques, the way Tata did for Nano in order to design their low cost car.

This motorcycle will be targeted at the rural customers but the company is taking utmost precautions not to compromise on the quality and performance.

This motorcycle will not be a step-through so as to differentiate it from a moped and give the customers a true feeling of riding a motorcycle.

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Entry posted on January 18th, 2010 and filed under Hero Honda
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