Two-wheeler sales humming, but shake-up ahead

Though the Indian car industry has slowed down in the current fiscal year, the two-wheeler industry still grows at a decent pace of 16% at 8.9 million units in the first eight months.

Pawan Munjal, MD and chief executive of top bike maker Hero MotoCorp, says the double-digit growth will continue in the next fiscal year too.

What is certain is the big shake-up as the the fallout of Hero Honda split will begin to reflect in the next fiscal year. As per a recent report by the Standard Chartered Securities, a leading broking company, 'Honda's intention to enter the 100cc segment in 2012 is likely to directly impact Hero MotorCorp's key executive segment from the financial year 2012-13'. Unsurprisingly, Hero is spending big money in re-branding, R&D and marketing, an amount that the company does not want to reveal.

At the ongoing AutoExpo, Honda Motorcycles & Scooters India launched seven models including mass market 110 cc Yuga, new CB Shine and new 102 cc Dio scooter. Hero's response is new 110 cc Passion X Pro, a 110 cc scooter Maestro, and 125 cc bike Ignitor.

Two trends quite evident is the growing interest in scooter segment and renewed emphasis on rural market. Besides HMC and HMSI, Yamaha unveiled three models which will hit market this year while Piaggio's Vespa, which has strong brand recall, made a re-entry. The production will start at the Baramati facility of Piaggio in March.

Munjal added rural market is growing at a faster rate. Bajaj has launched a workhorse 150 cc Boxer in the rural market, which was recieved well.

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