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Bike sales pick up speed in the 125-250cc

Bike sales pick up speed in the 125-250cc

Author | Source: The Economic Times | Friday, Oct 07,2005 7:13 AM

Bike sales pick up speed in the 125-250cc

The 125-250cc category of motorbikes is seeing action these days, with the launch of Hero Honda's Achiever 150cc bike due in November '05. For FY05, 7.4 lakh 125-150cc bikes were sold, accounting for 15% of all motorbike sales. During April-August '05, 3.5 lakh bikes in this category (defined as B3 by SIAM) have been sold - up 65% from a year ago, accounting for 16% of all motorbike sales till date.

With rising disposable incomes, greater desire for power and style, and easy finance still available, Indian consumers are moving steadily up the power scale. The absolute sales of every player have risen as the segment itself expanded from 4.5 lakh in FY04 to 7.4 lakh in FY05, a growth of 64%. By contrast, the fiercely competitive B2 category (75-125cc), which accounts for 84% all motorbike sales in India, grew 14% to 41.7 lakh units in FY05 and in April-August '05 sold 13% more bikes than a year ago.

Bajaj Auto led the pack in FY05, with 3.9 lakh units, accounting for nearly 53% of all 125-250cc bikes sold that year. Hero Honda sold 1.2 lakh units, giving it a market share of 17%. TVS Motor held 14% marketshare in FY05 while Yamaha had 7% and Honda Motorcycles and Scooters (HMSI) garnered 9%. Market shares have undergone a shift in the past two years in the 125-250cc segments, with Bajaj Auto's share falling from 63% in FY04 to 53% in FY05. Hero Honda gained from 7% to 17% and TVS Motor rose from 10% to 14%.

Bajaj has brands like the Pulsar and Discover, Hero Honda, the CBZ, Karizma, 125cc Splendor, Ambition 135cc, and now the Achiever; TVS Motor has Victor and Fiero; Yamaha has the Fazer; LML the Graptor; and HMSI the 150cc Unicorn. With the 125-250cc segment expected to grow faster than any other category for the rest of the year, introduction of new brands may not alter relative market shares significantly in the second half of FY06.

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