New Delhi: Honda Bike & Scooter India (HMSI) has overtaken Hero MotoCorp to develop into the most important vendor of two wheelers within the home market throughout April-July 2024. The Japanese automaker dispatched 18.53 lakh items, forward by over 21,000 items, in opposition to Hero’s 18.31 lakh items.
(Supply: SIAM)
The hole between the 2 corporations has been narrowing over the following months. Throughout April, Hero was forward in its dispatches by 32,250 items, which got here down to eight,819 items by June. HMSI lastly overtook the market chief in July by a major margin of over 91,583 items.
Hero MotoCorp has been the market chief within the home two-wheeler business wholesales for the reason that board of Hero Honda – the three way partnership with India’s Munjal household, and Japan’s Hero Motor Corp – took the decision of parting methods in 2010-11.
Together with having a widespread attain of its retail networks, Hero’s energy lies within the entry-level commuter bikes with Splendor and Ardour, particularly for the agricultural and semi-urban areas. Nevertheless, with an rising development of premiumisation within the business, the gross sales on this section have been declining throughout the business.
HMSI, alternatively, is synonymous with its Activa scooters, a class which has been its core and is gaining traction over the previous few years.
Whereas it’s anticipated that this reversal in gross sales development is more likely to proceed within the upcoming months, business consultants recommend that this might be an end result of a powerful restoration within the scooter section over bikes. One may observe that OEMs are build up stock and stocking up for the festive season that begins with Raksha Bandhan and Janmashtami in August this 12 months.
In the meantime, HMSI is but to take a lead within the retail gross sales. Thus, the whole image could also be clearer by the top of the third quarter.
To have an edge, each Hero and Honda are strategizing and dealing on a number of product launches within the premium and rising electrical car (EV) class.
Niranjan Gupta, CFO, Hero MotoCorp, stated Hero is seeing a pointy restoration in market share within the 125cc section with its new Xtreme 125 cc. “Our focus shifting ahead shall be, constructing our manufacturers within the premium section on the again of launches completed prior to now few quarters, to win on this section. We shall be launching new fashions in scooters as effectively within the subsequent 2 quarters.”
Two-wheeler development story
Aided by an enchancment in rural demand and within the backdrop of expectation of a wholesome monsoon, the two-wheeler business has been on a revival path over the previous months.
“It have to be famous nevertheless that the quantity development comes on a curtailed base,” stated Rohan Kanwar Gupta, Vice President & Sector Head – Company Scores, ICRA.
He added that components akin to rising GDP per capita, urbanization, rising center class and favorable demographic dividend with a better portion of the youth inhabitants are actually driving the premiumization development within the business.
On the outlook for the two- wheeler business, Pushan Sharma, Director- Analysis at CRISIL, means that each entry stage and premium two wheeler gross sales could be aided by the upcoming festive season and new mannequin launches.
“The competition season has been introduced ahead this 12 months compared to FY2024, therefore a big a part of the wholesale construct up is more likely to occur in Q2 this 12 months as a substitute of Q3. That is more likely to additional optically prop up Q2 gross sales on-year,” he stated.
Through the years, there was a rising demand for scooters over bikes. As per CRISIL, the scooter section’s share has risen from 28% in FY15 to 34% in FY24.
“This development is attributed to a rising variety of ladies within the workforce and enhancements in rural infrastructure. In FY24, scooters had surpassed pre-Covid ranges by 4% whereas bikes had been nonetheless at 94%. The poor efficiency of bikes is on account of subdued rural incomes, with city areas performing higher which is seen in scooter gross sales performing higher than bikes,” Sharma stated.
