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Hero MotoCorp & TVS Motors Sales Contracts, Overall Industry Growth Remains Flat


Hero MotoCorp & TVS Motors Sales Contracts, Overall Industry Growth Remains Flat
We bring you our monthly report on the automobile sales for February, 2017. You can catch all the February Sales here. You can also find all the coverage in relation to the automobile sector here.

Sales of Two Wheelers and Three Wheelers stood at 14.38 lakh units in February, 2017 against 14.43 lakh units during the same time last year resulting in a contraction of 0.4%
Hero MotoCorp & TVS Motors Sales Contracts, Overall Industry Growth Remains Flat
YTD sales stood at 170.15 lakh units against 163.39 lakh resulting resulting in a growth of 4.1%.
Hero MotoCorp & TVS Motors Sales Contracts, Overall Industry Growth Remains Flat
Bajaj logo
Bajaj Auto Overall Sales Remain Flat, Sales of Commercial Vehicle Contracts 23.7%
Hero MotoCorp Logo
Hero MotoCorp Sales Contract 4.8%, Sees Volumes Gradually Picking Up Post Demonetization
Honda logo
The parent company of HMSI Honda Motor Company has lowered its sales expectations citing demonetization impact. Honda has reduced its 2 wheeler sales target for the Asian region by 560,000 units to 15.975 million units.
Here is what Keita Muramatsu, CEO at Honda Motorcycle & Scooter India said in a recent interview:

  • The challenge now is to cross the five million sales milestone this fiscal. This would be the first for Honda from a single country globally.
  • Market recovery post demonetisation is happening but is still driven by south and west. While February is showing near normalcy in urban areas, rural recovery may happen by the end of next harvest season towards March end.
  • We are definitely looking at growing in double-digits this year as well as in the next financial year.

HMSI launched BS IV complaint Activa 125 and CB Shine SP. One of the requirements effective April 1, 2017 is that the headlamp of all two-wheelers manufactured in India should be equipped to automatically turn on as vehicle starts to improve visibility in all conditions also known as AHO – Automatic Head Lamp On.
The New Activa 125 became the first scooter in the country to come equipped with BS-IV engine. HMSI confirmed the price variance between the older versions and the BS IV complaint was only Rs. 500/-. Also rolled out was the 50 lakh unit of CB Shine from the Tapukara plant in Rajasthan which as well comes with a BS IV upgrade. With this HMSI now it’s stable of BS IV complaint models – CB Shine, CB Unicorn, CB Hornet, and Activa.
Just this week, Honda launched the Activa 4G with BSIV compliant engine. This is HMSI’s second launch in India this year after the new-gen Honda Activa 125, which was introduced last month.
Hero MotoCorp & TVS Motors Sales Contracts, Overall Industry Growth Remains Flat
Commenting on the new edition, Yadvinder Singh Guleria, Senior Vice-President for Sales and Marketing, said:

With trust of over 1.5 crore Indian families, Honda’s iconic Activa is the first automatic scooter to become not only India’s but also World’s Number 1 selling two-wheeler in 2016. The fourth generation BS-IV complaint upgrade of the most loved family scooter -Activa 4G is ready to delight customers once again with added convenience of mobile charging socket & new colours.

Honda reported sales of 369,865 units in the Domestic Market against 351,401 units during the same time last year resulting in a growth of 5.3%.
Hero MotoCorp & TVS Motors Sales Contracts, Overall Industry Growth Remains Flat
The company in its statement said:

Over HMSI grew by 13% growth (YTD February’17 Domestic+Exports) and the company also claims that its market share increased by 1.4% at 27.2% in February’17. HMSI emerged as the highest volume contributor with 24,150 units added in overall two-wheeler industry, Honda said in a media report. Company’s exports grew 39% from 1.84 lac units YTD to close at 2.56 lac units in April’16 to February’17.

Yadvinder Singh Guleria, Senior Vice President – Sales & Marketing, Honda Motorcycle & Scooter India said:

With the continued momentum of recovery post demonetisation, Honda has emerged as the first choice of Indian 2Wheeler customers. This recovery period has been favourable for Honda, as we continue to grow with a 1.4% increase in domestic market share of 27.2%.
For Honda, our market strategy is well placed and from today i.e 1st March 2017, we have started production of only BS IV models at all of our 4 plants. The customers will be delighted with the complete new BS-IV compliant line-up with AHO in the coming days.

Royal Enfield Logo
Royal Enfield Overall Sales Growth At 18.9%, Sales of >350cc Motorcycles Decline 29%
With BS IV compliance closer on the horizon, Suzuki launched the updated versions of Gixxer, Gixxer SF and Access 125. All the models are expensive by a little over Rs.1,000/- compared to the older versions.
Commenting on the re-launch, Suzuki India – Managing Director, Satoshi Uchida said:

Since their launch, the Gixxers and the New Access 125 have gained immense popularity in their segments. In order to provide our customers with environment friendly technology in line with the latest regulations, these vehicles now comply with BS-IV and also feature AHO. We are also refreshing this range with new colour & graphic variants. For the New Access, the Metallic Sonic Silver is aimed at the fashion conscious customers who are looking for more options in terms of modern styling. The Gixxer and Gixxer SF 2017 variants will appeal to the young rider who wants to make a style statement on their mean machines. We are confident that these new colours will find universal appeal and further propel our growth in their respective segments.

Hero MotoCorp & TVS Motors Sales Contracts, Overall Industry Growth Remains Flat
TVS Motors
TVS Motors Motorcycle Sales Fall 23.48%, Domestic Sales Contracts 6.2%
yamaha logo
Yamaha India’s parent company Yamaha Motors reported their 2016 annual performance with a 5.2% growth in Net Income while attributing the growth to business expansion in emerging markets and improved profitability in various business sectors.  Increased sales of higher-priced products and cost reductions were witnessed in emerging markets such as India, Vietnam and the Philippines. For 2017, Yamaha Motor expects to grow income and profits with only forex being the major party spoiler.
Yamaha India on the other hand, initiated a recall of over 1,000 units of YZF-R3 bikes stating that the step was part of a global recall by the parent company which has detected a defect in the bike’s Fuel Tank Bracket and Main Switch Sub Assy.
In a statement released, the company said:

The YZF-R3 is an exceptional performer and has been very successful on Indian roads. As a responsible manufacturer, Yamaha has initiated a factory modification campaign under which the defective parts will be replaced with a modified one on ‘free of cost’ basis at Yamaha dealerships.
The replacement activity would begin immediately as the company would communicate with customers directly. This recall is a reiteration of Yamaha’s commitment to the safety of its customers by offering safe and satisfactory products.

Note: Sales numbers presented here are manufacturer reported sales numbers i.e. factory dispatches to dealerships. They are NOT retail sales figures to end customers.
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