Excerpts from Bazaar on CNBC-TV18 Watch the full show »
Backed by Diwali sale boost, Yadvinder Guleria, Vice President-Sales & Marketing, Honda Motorcycles is confident of selling 45 lakh 2-wheeler units in FY15.
In addition, second largest two-wheeler player sees a massive surge in ownership replacement demand for the two-wheeler segment, in turn indicating a pick up in the economy.
The company has a 26 percent market share in the two-wheeler space in H1FY15. Furthermore, it enjoys leadership in automatic scooters with 55 percent market share, he says in an interview with CNBC-TV18’s Latha Venkatesh and Sonia Shenoy.
Experts believe this bumper Diwali celebration will continue in next Diwali as well, on hopes of more reforms and execution of these reforms from the Modi government going ahead.
Also read: Is Hero Motocorp best recovery play after record sales?
Below is the edited transcript of the interview:
Q: Was it a market share increase, was it more replacement demand or did you see in your buyers list a lot of first time buyers and an actual expansion of the market pie?
A: Definitely, there is a mix of buyers in the market. We do see a lot of first time buyers and maybe up to 125 CC to 150 CC category, there are a lot of first time buyers but yes. At the same time, in the entry level segment, we obviously see the maximum number of first time buyers but replacement market is also growing because now the ownership period of the two wheeler buyers in the last couple of years or I would say in last one decade has definitely reduced from earlier 8-10 years to now probably in the range of five years. So that also is giving an impetus to the two wheeler market growth.
Q: Will you be able to give us a candid view of what the exact market share situation is? Can you tell us what is Honda’s market share in the two-wheeler market now and in the scooter segment and who has Honda really gained market share from in the last six months?
A: Probably, the last question which you ask is for you to work out but yes, definitely I can share the first six months. April to September – Honda is at 26 percent market share in the domestic market and we continue to be the leader in the automatic scooter segment at 55 percent. It is very significant from Honda’s perspective that we are not only able to maintain our leadership in automatic scooter market but in fact, compared to the first six months of the previous fiscal year, we have gained 4 percent because last April to September we were around 51 percent market share and in this year, we stand at 55 percent market share despite having many new launches in the segment which have happened. At the same time, this segment of automatic scooter is primarily driving the overall two-wheeler sales in the Indian market.