Hero Honda and Bajaj Auto, the two largest motorcycle manufacturers in India, are getting embroiled in a battle for the fast-growing premium two wheeler businesses. The BM Munjal group company is posing stiff competition to the segment leader that is trying to cash in on the high margin segment to arrest its falling market share.
Hero Honda has been steadily losing its overall market share which stood at 54% in April-February FY11 from 59% in FY10 and 75% in FY09. Its share of the premium segment has fallen to 13% in Apr-Feb of FY11 from 29% in FY10 and 34% in FY09. In the mid segment, its share has declined to 71% in Apr-Feb FY11 from 75% in FY10.
To tap the premium segment, Hero Honda is setting up special dealer zones for different two-wheeler categories, offering premium facilities for mass-market bikes, revamping research and development, creating different marketing verticals and starting a used-motorcycles business for the first time in the history of the Indian two-wheeler market. The company has increased advertising spend for its premium bikes such as Karizma ZMR and repositioned some of the mid-segment bikes such as Splendor Pro and Passion Pro with additional premium features. Hero Honda is also trying to combine the premium sporty appeal with the fuel-efficient commuters’ bike appeal in its premium motorcycles.
Bajaj, on the other hand, has stepped up its rural focus and appointed 135 dealers in small towns and mini metros, where it had only 25 dealers. It also offers special finance scheme for rural customers. It is also planning to launch the next generation Pulsar, designed by ex-BMW design head Edgar Heinrich, which will further boost its share in the premium segment.
| Company Name | CMP |
|---|---|
| Bajaj Auto | 8764.75 |
| Hero MotoCorp | 4268.15 |
| TVS Motor | 2398.00 |
| Eicher Motors | 4748.05 |
| Atul Auto | 571.50 |
| View more.. | |
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