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Sep 07, 2012, 09.09 AM IST
CNBC-TV18’s Sunanda Jayseelan and Ronojoy Bannerjee report that rivals Hero and Honda are trying to lead the fight market-share by weaving the strands of optimism and caution to formulate new strategies for the two-wheeler market.
CNBC-TV18's Sunanda Jayseelan and Ronojoy Bannerjee report that rivals Hero and Honda (HMSI) are trying to lead the fight for market-share by weaving the strands of optimism and caution to formulate new strategies for the two-wheeler market.
While Hero Motocorp is looking to expand its footprint into newer geographies, Honda's focus is clearly on the domestic market with an aim to become the country's largest two-wheeler maker by 2020. Hero Motocorp is being cautiously optimistic feels that while the festive season will turnaround the gloomy sentiment, though the issues of high interest rates and fuel costs could pose a challenge. The company however maintains there is simply no question of cutting down its investment plans. And as the domestic market slows down, Hero Motocorp has finally firmed up its plans to tap export markets. Pawan Munjal, MD and CEO, Hero MotoCorp, "We are going to open shop in Guatemala by October and in Kenya by the end of the year." The party continues for HMSI. After raking in big sales thanks to the Honda Dream Yuga, it is confident that it will continue to beat the industry trend. YS Guleria, head-marketing and sales, HMSI, said, "We have grown at over 50% in the April-August period..."
Honda's optimism could be bad news for erstwhile partner as the company starts eating into its rival's market share. Besides Honda, Bajaj Auto - Hero's next big competitor- is also lining up new launches. The road ahead for Hero Motocorp seems to be a tough ride ahead.
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