Thirteen years after the breakup, Honda overtakes former partner to become the new Hero
Hero MotoCorp has fallen to the second position behind Honda Motorcycle & Scooter India (HMSI) based on wholesale dispatch data. According to figures from the Society of Indian Automobile Manufacturers (Siam), Honda has surpassed Hero MotoCorp in the April-July period, with 18.53 lakh units compared to Hero's 18.31 lakh units. This represents a difference of approximately 21,653 units, which grows to over 1.3 lakh units when including exports. Both companies declined to comment when approached, a TOI report stated. In January 2011, Hero MotoCorp and Honda Motors (Japan) decided to split after 26 year of partnership.
Reasons for the Shift
Auto experts attribute the market shake-up to several factors just ahead of the festival season. Ravi Bhatia, president and director at Jato Dynamics, told TOI, «This is a significant change as Hero MotoCorp has long been the market leader in the two-wheeler segment. Ahead of the festival season and based on initial signs of recovery, HMSI has ensured supplies to the network.»
Urban-Rural Dynamics
The urban-rural dynamic also plays a role in this shift. Shruti Saboo, director at India Ratings & Research, explained, «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.»
Retail Sales Comparison
Despite Honda's lead in wholesale dispatches, Hero
Read more on economictimes.indiatimes.com
