Honda clocked just over 18.53 lakh units in domestic wholesales in the April-July period, while Hero logged over 18.31 lakh units, according to dispatch data from the Society of Indian Automobile Manufacturers (Siam).The difference is around 21,653 units. With exports added, the difference goes up to over 1.3 lakh units. When contacted, both Hero MotoCorp and HMSI refused to comment.
Auto experts say there are a couple of reasons why this shake-up has happened just before the festival season. “This is significant change as Hero MotoCorp has long been the market leader in the two-wheeler segment. Ahead of festival season and based on initial signs of recovery, HMSI has ensured supplies to the network,” said Ravi Bhatia, president and director at research firm Jato Dynamics.
The urban-rural dynamic is another factor. “During April-July, the scooter segment continued to outperform motorcycles. While demand from rural markets has started to improve, complete recovery is yet to be seen. Meanwhile strong demand from urban markets is supporting sales of scooters as well as mid-to-premium level motorcycles,” India Ratings & Research director (corporates) Shruti Saboo said.
Honda lags Hero MotoCorp in terms of retail sales. Hero MotoCorp retailed over 17.5 lakh units in the April-Jan period compared to HMSI’s 15 lakh tally, data from Federation of Automobile Dealers’ Associations (Fada) showed. While the retail sales gap stands at nearly 2.5 lakh units, Honda’s marketshare is growing and Hero’s is shrinking. According to Fada data, HMSI’s retail market share has increased from just under 20% in April to 24.3% in July while Hero MotoCorp’s marketshare has dropped from just over 33% in April to 29.4% in July. With a bumper festive season expected this year, the fight between the two biggies will hit top gear.