Business IdeasBike sales grow 24% in July
On the back of 14 per cent growth in sales in the first quarter of financial year 2009-10, two-wheeler makers have reported 24 per cent growth in sales in July. The segment comprises motorcycles and scooters. The growth is a result of low base as annual sales growth last year was a mere 3 per cent.
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Hero Honda, the country’s largest motorcycle maker, posted 30 per cent rise in sales as compared with the same month last year. The manufacturer of bestselling 100-cc brands like Passion and Splendor sold 366,808 motorcycles as against 281,317 in the corresponding period last year.
The company’s urban-rural market mix is roughly 60:40.
RACING AHEAD
Company
2008
2009
% change
Hero Honda
281,317
366,808
30.4
TVS Motor
102,530
107,883
5
Yamaha
11,792
17,316
47
Suzuki
10,457
12,585
20
Source: Companies
Piyush Parag, an analyst at Religare Securities, says the growth for Hero Honda has come basically from good volumes generated by its 100-cc brands. “Rural markets continue to contribute to the company’s total sales, which is a result of the strong distribution network.”
In the second half of the year, Parag expected sales to dip since the company had gained market share rapidly last year, when the entire market shrunk. Hero Honda’s market share stands at 59 per cent.
July sales for Chennai-based TVS Motor grew 5 per cent to 107,883 units as against 102,530 units in July 2008. Exports dipped about 19 per cent to 13,061 units.
India Yamaha Motorcycles sales grew 47 per cent to 17,316 units. The rise comes from good demand for the company’s high-performance motorcycles belonging to the FZ and YZF series.
Suzuki Motorcycle’s sales grew 20 per cent last month. It sold 12,585 units of motorcycles and scooters. The company says the demand for its 150-cc motorcycle, the GS 150 R, has been robust.
Honda Motorcycles and Scooters India Ltd (HMSI) sold 112,855 units both in export and domestic markets. This number also includes exports of CKDs (completely knocked-down kits.)