Hero MotoCorp is currently selling products like CBZ, Karizma, Hunk and the recently launched Impulse in over 125 cc bike segment.
Competition is closing in on India’s largest bike maker Hero MotoCorp(HHML). After it parted ways with erstwhile partner Honda Motor Corporation (HMC) last year in December, its premium bike sales have fallen 30 per cent from January 2011 to November 2011.
In the segment of bikes with engine power between 125 cc and 250 cc, Hero MotoCorp sold 34,116 units in January compared to just 23,860 units in November. While its competitors have seen their sales grow in double digits.
Bajaj Auto’s sales rose from 1.01 lakh units in January to 1.34 lakh units in the same period. Honda which sold 59,267 units in this segment in November 2011 also took over TVS to become the third largest bike maker in the country.
Hero MotoCorp is currently selling products like CBZ, Karizma, Hunk and the recently launched Impulse in over 125 cc bike segment. These products compete with brands like Bajaj Auto’s best-sellers Pulsar and Discover, Honda Motorcycle & Scooters India’s (HMSI) Unicorn Dazzler and Yamaha’s FZ series.
Hero MotoCorp sales fell in one of the fastest growing bike segment between 125cc and 250 cc with customers increasingly upgrading to premium bikes. This could be a cause of concern for the company. This segment also known as ‘commuter deluxe’ makes up 65 per cent of the bike market now in value.
However, Hero MotoCorp’s sales are strongest in entry level bike market (between 75 cc to 125 cc) where it sold 4.6 lakh bikes in November compared to 94,343 units by Bajaj and 12,478 units by HMSI.
As per the licensing agreement with HMC, Hero can source new products from the Japanese auto major till June 2014.
Meanwhile, Hero is also scouting for technological partners. Rival Bajaj is set to launch a new generation Pulsar next month and HMSI will also unveil two new bikes at the auto expo including a 100 cc bike to directly take on Hero.
