The company commanded 71.26 percent of this segment alone in Q1 FY2016, as per SIAM industry sales data.
30 Jul 2015 | 32385 Views | By Amit Panday
India’s largest motorcycle manufacturer, Hero MotoCorp is keeping its leadership position strongly in the biggest two-wheeler category by volumes, the 75cc-110cc mass commuter motorcycle segment.
The company commanded 71.26 percent of this segment alone in Q1 FY2016, as per SIAM industry sales data. Hero MotoCorp sold a total of ...
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India’s largest motorcycle manufacturer, Hero MotoCorp is keeping its leadership position strongly in the biggest two-wheeler category by volumes, the 75cc-110cc mass commuter motorcycle segment.
The company commanded 71.26 percent of this segment alone in Q1 FY2016, as per SIAM industry sales data. Hero MotoCorp sold a total of 12,53,594 units during Q1 of this fiscal as against 12,99,232 units sold in Q1 FY2015, reporting a Q1 YoY fall of 3.51 percent.
This can be attributed to the slowdown in demand in the rural markets, thereby affecting the sales of entry level motorcycles which include models under Hero’s widely popular Passion and Splendor brands. The models under the Splendor brand recorded domestic sales of 633,420 units followed by sales of 348,008 units contributed by the models sold under the Passion brand.
The company’s inventory for Q1 this fiscal stood at six weeks as against the industry average of 4-5 weeks.
For FY2014-15, with total sales of 48,19,121 units in this category alone, Hero’s market share stood at 70.20 percent. For the same year, the domestic market size of the 75cc-110cc motorcycle category stood at 68,65,006 units. This clearly shows that despite the fall in the overall category, the company continues to command with its dominating market share.
Bajaj Auto, which posted YoY declining numbers in April and May 2015 but a sharp growth in June 2015, turns out to be the only two-wheeler manufacturer in this category with positive Q1 YoY growth of 12.74 percent in Q1 FY2016. Backed by a sharp uptick in the demand for its 100cc mass commuter models – the CT100 and Platina ES – the company has posted sales of 290,364 units during Q1 FY2016 under this category.
Interestingly, the CT 100, which has sold close to 1,74,000 units during Q1 this fiscal, along with the Platina (with sales of 76,477 units) has contributed to company’s sales in 75cc-110cc category by more than 2,50,000 units during the said period.