Monday, November 26, 2012

But will the two wheeler giants give up easy?!

The middle-class customer never had it so good when it comes to four-wheeled toys... But will the two wheeler giants give up easy?!

Hero Honda for instance, expanded 18% between April-July 2008-09 and sold 1,149,753 two-wheelers and is confident of the two-wheeler segment. “Interesting developments, but there is no competition from small cars.

This is because the cost of ownership of bikes is less than that of a car, which includes fuel cost, insurance cost, maintenance cost etc.,” explains Anil Dua, SVP, Hero Honda to B&E. TVS on the other hand is betting big on its progressive two-wheeler product range. “Our focus remains on two-wheelers even if Bajaj and the others are launching low-cost cars,” opines Venu Srinivasan, Chairman, TVS Motor on questions concerning threat from small cars. Like them, there are a number of players in the market for whom two wheels remain the mainstay despite the hoopla.

It is interesting to note that while many new patrons have been added to the car segment, many more are making their way into the motorbike segment! Last year, the two-wheeler segment alone recorded a growth of 38% with at least 700,000 two-wheelers being sold every year. According to Yezdi Nagporewalla, of KPMG, “In volumes the motorbike segment is 7 million units strong and the competition from Tata’s Nano and others will at best be around 1 million units.” Interestingly, even though both the sides (two-wheelers & ultra-cheap cars) have their own take on the possible outcome of the battle, neither has the consumer figured-out for sure. Maybe that’s why they say, ‘Consumer is King’!

Source : IIPM Editorial, 2012.

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