2-wheeler firms overcome recession with 14% growth

Delhi-based, Hero Honda sold 2,46,536 bikes in the first half as against 1,88,775 bikes it sold last year to capture a market share of over 38 per cent.

Similarly, Bajaj Auto has been able to maintain its 2-wheeler market share with a volume growth of 13.9 per cent mainly due to the launch of three new products.

In volumes terms, Bajaj sold 6,01,092 two-wheelers (5,27,877) in the first half and expects a sales of about6,75,000 two-wheelers in the rest of the fiscal. It sold 85,898 three-wheelers during the period and estimates a sale of about one lakh three-wheelers, including the new diesel wheeler, in October 1998-March 1999. Escorts Yamaha sold 90,325 bikes (up 20.43 per cent).

LML also recorded a surge in sales by recording a nine per cent growth. The company sold 1,67,071 scooters in the first half and held a market share of 25 per cent.

On the other hand, the commercial vehicle and high priced passenger car segment were the worst hit with the heavy commercial vehicles (HCV) segment posting a negative growth of over 34 per cent. Sales of light commercial vehicles also dropped by over 20 per cent, AIAM figures said.

Truckmakers Telco, Ashok Leyland and Bajaj Tempo witnessed their sales plummeting in huge margins. Telco’s passenger cars, Siera and Estate, and multi utility vehicles (MUV) like Sumo were also at the receiving end of the recession.

Sales of Telco cars stood at 1,350 units over last year’s 2,991units whereas its MUV’s sales went down to 16,690 units over 24,640 units sold last year.

The sales of passenger cars also fell with General Motors, Daewoo Motors India (DMIL) and Mahindra Ford recording a negative three per cent growth in the passenger car segment in the first half of the current fiscal.

However, Maruti Udyog Ltd (MUL) scraped through by posting a meagre two per cent growth during the period. Maruti sold 1,73,022 cars over 1,69,555 cars last year.

The negative growth in the passenger car segment was mainly attributed to the dismal performance of the luxury car segment which registered a nine per cent drop in the period.

Severely hit was the world’s biggest carmaker, General Motors, which launched a high priced model — Open Astra — during recession. Its sales fell by a whopping 64 per cent in the first half to 1,966 cars as against 5,469 cars sold during the same period last year.

Things were equally bad for Mahindra Ford either as the carmaker had to settle with sales figures of1,977 cars over 4,331 cars sold last year — a fall of 54.4 per cent.

South Korean Chaebol Daewoo too had a tough drive during the period with sales of its Cielo coming down by 24.6 per cent at 4,114 units compared to 5,511 units sold last year. The company is now gearing up to launch its small car — Matiz to penetrate the low-price segment, hitherto monopolised by Maruti 800.

The new entrant Honda Siel, however, sold 5,090 `City’ cars in the first half and captured over 20 per cent in the luxury car segment. Ind Auto, now making a comeback through the revival of `Uno’ and introduction of its diesel variant, sold 4,502 cars in April-September this year.

Other passenger carmakers, PAL-Peugeot, Mercedes Benz and Premier Automobiles also suffered major drop in their sales during the period.

Other commercial vehicle makers Ashok Leyland, Eicher Motors, Mahindra and Mahindra and Bajaj tempo also found it difficult to cope with the slowdown as none of them could notch up impressive performances.

AshokLeyland recorded 16 per cent fall in heavy commercial vehicles and over 42 per cent in light commercial vehicles, while sales of Bajaj tempo went down by 32 per cent.