Hero under pressure as Honda talks of quitting
Hero Honda’s, the largest producer of two-wheelers in India tie up, is under pressure as the Japanese partner is looking for exiting the partnership.
Adding to the woes is that the Munjal run, Hero Group is also facing fall in market share in the motorcycle segment of 75-125 cc category. The share has gone down from 81.8 per cent in April-August, 2009 to 68.9 per cent during this year.
Hero Honda has managed to stay at the top since it produces and sells volumes in the 100 cc segment. Its brands in this area are- CD Deluxe, CD Dawn, Splendor+, Splendor NXG, Passion Pro and Passion Plus.
Moreover, its closest rival-Baja Auto has managed to gain ground in the entry level segment. This has been possible because of the introduction of Discover brand in 100 cc during last year.
The same has happened since Bajaj ate into the market share of Hero Honda. While sales of Bajaj increased by 19.5 per cent, the same of Hero Honda fell down.
Hero Honda managed to sell 17,87,869 units in the total market of 25,95,516 units of 100 cc. It had sold 16,78,570 units in the total market of 20,51,656 units.