Indian 2 Wheeler Sales Figures – Mar 2016

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Source: AutocarPro

A look at the model-wise sales :

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Interesting Statistics –

  • Bajaj’s V15 (based on INS Vikrant) equals the much cheaper sibling Platina in terms of sales (V15 sold 16,532 units v/s Platina’s 17,072 nos). V15 initial sales looks impressive.
  • The Avenger duo (150cc+220cc) have performed rather well! Combined they sold over 25k units in Mar’16!
  • Hence, V15 & Avenger contributed significantly to Bajaj’s volumes and the motorbike manufacturer grew an impressive 31.28% YoY.
  • Street 750 still remains Harley’s bestseller and the growth rate is spiking for the entrant (66% growth YoY).
  • Hero’s Duet seems to have cannibalized its siblings to an extent – while Maestro & Pleasure saw a downfall; Hero sold 86,810 scooters in Mar’16 vis-a-vis 58,720 units in Mar’15!
  • HF Deluxe sales have strengthened and have overtaken Passion Sales!
  • Honda’s scooterette portfolio (apart from Activa) seems to be struggling. Both Dio & Aviator volumes dipped – the competition from Yamaha (Fascino) / Hero (Duet) taking a toll?
  • 1,591 units of Navi was shipped in Mar’16 – can it near the aspirational sales volumes of TVS XL (~70k units/mth) in times to come?
  • Only 260 units of Himalayan? We expect the numbers to be much higher!
  • Surprisingly, even the refreshed Access couldn’t help gain Suzuki experience growth. Suzuki’s best seller (Access) de-grew 30% YoY.
  • TVS has turned the tide to its favor with Jupiter – It has broke all sales records this year and emerges to be the second scooter to list in the Top 10 selling Two-wheelers for FY16 (a feat achieved by no other scooter yet!) –

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Journey from Hero Honda to Hero v/s Honda

In 1984, Hero Cycles graduated from a Bicycle maker to a Motorcycle manufacturer by collaborating with Honda Motor Company Ltd of Japan. The first product post the collaboration agreement was launched in 1985 – named Hero Honda CD100. The rest we can say was history – By 2001, Hero Honda grew to be the world’s largest 2 wheeler company! The association churned many such milestones in the Indian market and became a household name pretty quickly. Like every marriage, this association had some bitter experiences in between and later could simply not cope up with the increasing differences. While Hero wanted to taste a bit of exports market and strengthen its inhouse R&D; Honda found it demeaning its global operations. The duo decided to separate ways and dissolve their Joint Venture in December 2010. The 26-year long pact ended on a quiet note with strong individual aspirations to dominate the local market.

Five years post the split, Honda Motorcycles did everything possible in the book to overtake the ex (Hero MotoCorp’s) dominance in the Indian market – though the effort was monumental and appreciable, the Japanese has still a long way to achieve the feat. The efforts taken by Honda for the attempt to become the market leader was mind-boggling. In past 5 years, it expanded its outlets from mere 800 nos to 4,500 sales outlets! In 2015, Honda’s global sales of all products was 28 million units out of which global 2wheeler sales stood at 17 million units. Today, 25% of the total Honda two-wheelers sold across the world come from India. 3 manufacturing plants were opened in last 4 years! – Plants opened at Tapukara Rajasthan (in 2011), Narsapura Karnataka (in 2013) and scooters only plant at Vithalpur Gujarat (2016). These drastic steps allowed HMSI to climb to a market share of over 26% and stand as a real threat to the Indian Leader (Hero Motocorp). See the climb for yourself here –

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Source: Business Standard

The competition was intensified with Hero Motocorp’s response in said time and the Indian MNC challenged HMSI in their own game – by attacking the baseline (scooters). Hero’s retaliation shook the Japanese major quite hard and the scooter market share statistics changed within 6-month time frame! –

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Source: Business Standard

In September last year, Hero expanded its scooter offering with the launch of two products — Duet and Maestro Edge. Until then, the country’s largest two-wheeler maker had two scooters to offer: Pleasure and Maestro. These scooters were indigenously developed by Hero’s R&D and the long term plan is to dominate the scooter market as well. Other players jumped into the game as well and have gained pretty significantly in past 1 year – say TVS’s Jupiter and Yamaha’s Fascino were instrumental in the growth story of their respective OEMs in the previous fiscal. The latest OEM-wise ranking and Market Share data is here –

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*FY16 (Apr’15-Feb’16) and FY15 (Apr’14-Feb’15)

Hero aware of the path ahead, has taken drastic measures to improve its R&D. It has set-up its first dedicated Rs 850-crore R&D centre last month. The 247-acre facility near Jaipur will have 600 engineers by the end of this year. Hero had a tiny three-acre R&D setup before the Jaipur centre came up. The centre will be led by Hero’s chief technology officer Markus Braunsperger, who came from BMW in 2014 after a 25-year-long stint in R&D, production and strategy roles.

See how both the biggies fare on various factors as on date:

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Source: Business Standard

While both Hero & Honda have intensified their efforts to command dominance in the domestic two wheeler market; the consumers are at advantage as they’ll receive world class products and their demand will be given paramount importance. We at Auto Punditz are happy to see the way two-wheeler industry is shaping in the subcontinent and wish that the better OEM will win the race!

Indian 2 Wheeler Sales Figures – Feb 2016

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Source: AutocarPro

Feb’16 saw a positive surprise from the Two-wheeler stable as the industry grew a healthy 12.76%. As healthy monsoon is expected this year; we foresee the momentum to continue and build up strongly in coming months. Bajaj’s INS Vikrant byproduct V 15’s shipment started off last month and 1,442 units were shipped to dealers in the first lot. Also notable launch of February was the Street Twin from Triumph – it will be the entry level offering from Britain’s largest motorcycle manufacturer. Launched at Rs.6.9 Lakhs, this 900cc bike contributed to 76% of Triumph’s sale last month! A look at the model-wise sales –

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Royal Enfield, Yamaha & Bajaj led the pack with stupendous YoY growth figures. Also these statistics were quite trivial for Feb –

  • Hero Motocorp again emerged as India’s largest 2-wheeler manufacturer with a Market Share of 39.4%
  • Honda Motorcycles India was a close second with a 25.7% Market Share. Hence the Top 2 manufacturers (Hero+Honda) over 65% of 2-wheeler Market share in India!
  • Honda’s dependency on scooters still prevail – Activa alone contributes to 60% of Honda’s sale in India!
  • Yamaha slowly strengthening its foothold in scooters and is reaping benefits – Fascino becomes its 2nd best selling product (after the FZ) and the scooterette portfolio (Fascino+Ray+Alpha) overtakes the bike sales (Saluto+FZ+R15+SZ) in Feb’16! Scooters contribution to Yamaha sales was 50.3%!
  • Bajaj still sets benchmark in premium bikes category – the Avenger portfolio crossed 30k units in Feb’16 (more than the Discover sales)! No wonder it has been one of the most profitable 2-wheeler entities in India.
  • Bajaj also has the entry level CT making an entry into the Top 10 list!
  • Harley’s cheapest offering – the Street 750 contributes to over 58% of Feb’16 sales for Harley Davidson in India. Also notable was Fat Boy’s performance last month – hefty 161% YoY growth!
  • Hero’s 3 entry level bikes – HF Deluxe, Splendor & Passion contributed to over 70% of Hero Motocorp’s sales! Also these stand tall in the Top 5 selling 2-wheelers list as well.
  • Hero loses out in the scooters race and none of Hero’s scooter offering could make an entry to the Top 10 list. Also TVS’s Jupiter emerges as the only scooter apart from Activa to be on the Top 10 table!
  • Moped (XL Super) proves to be the unicorn in TVS’s stable and still lists as the 5th selling 2-wheeler in India. However, Honda hopes to turn things around in this segment with Navi (dispatches started from 19 Mar’16).  Interesting name (NAVI – New Additional Value for India) and an interesting concept indeed (India’s first crossover two-wheeler)!
  • Mahindra’s flagship offering Mojo could sell only 96 units in Feb’16 – the condition remains similarly concerning for its other siblings. M&M is trying to revive volumes with the new Gusto 125, but things remain hazy for this manufacturer.
  • Continental GT remains the only offering from RE to suffer continuous de-growth! The cafe racer concept is yet to catch the fancy of Indian biking enthusiasts.
Honda Navi
Honda Navi (Shot from the Auto Expo)

Top 10 models in Feb’16 v/s Feb’15 –

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uber MOTO – Bike Taxi!

Yesterday Uber announced its foray into bike taxi segment and have termed it Uber Moto. This move will make India as the second market where the world’s most valuable startup, Uber Inc will offer motorbike taxi! It is barely a week before that Uber had announced launch of its bike taxi service in Bangkok. Bangalore is chosen as the test city where the services will be initiated and the market will be explored. Uber has been very flexible in testing its India-centric innovations – earlier cash payments, later launching auto services and now bike taxis. Uber will be leaving no stone unturned to build India as one of its biggest market in terms of revenue. Just within few hours of announcement from Uber, India’s biggest taxi aggregator Ola declared its entry into bike taxis.

2UberMOTO, will have a base fare of Rs.15 and will charge Rs.3 per km apart from Rs.1 for every minute of the ride time. Ola will charge Rs.2 for every km apart from Rs.1 per minute ride time charge, on a base fare of Rs.30.

We had predicted the rise in trend of Bike Taxis previously here. Bangalore is seen as the breeding ground for bike taxi providers and is already home to over seven such start ups (Mu Ride, Pilot, Streetryderr, Rapido, HeadLYT, Hey Bob and Pillionaire). Bangalore is one of the most congested cities in India and two wheelers have earned their reputation as the fastest mode of transportation in the growing metropolitan. Bike Taxis have already tasted success in similar conditions in other Asian Markets (specifically Indonesia) and India seems to have a huge potential. The other city which has attracted service providers has been Gurgaon – Bikxie Pink, M-Taxi, N.O.W Bike Taxi, Rideji and Baxi have already established their operations here.

India’s infrastructure, road safety, weather conditions and government regulations will be the biggest challenges for these startups. However, we are sure that the consumer demand will slowly ward off these challenges and will nurture such initiatives. As per the state transport department, Bangalore had 3.8-million two-wheelers, including motor bikes, scooters and mopeds, compared to 1.1-million cars as of March 2015. India is also one of the largest markets for two wheelers with sales more than doubling to 16 million in 2015 up from 7 million in 2008. The availability of such numbers of two wheelers should enable easy access to bike drivers.