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This tracker has been compiled from external sources and does not necessarily reflect the views of the company. Links provided will take you to the full articles appended at the end of the file.

© 2008 Zenith Optimedia.

 

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48. Car, 2-Wheeler Sales Zoom In April

2 May, 2008

 

The first month of the new fiscal year cheered up the auto industry. After a year of deceleration, the two-wheeler industry moved away from the negative sales graph while passenger car sales reached an all-time high in April.

 

The sales growth was helped by excise duty cut, apprehensions of rising interest rates after RBI’s move to tighten monetary policy further and the impending price rise indicated by all auto firms. Excise duty on cars and bikes was reduced to 12% from 16% in the Budget.

 

Hero Honda Motors, which had posted a flat growth in the last fiscal selling 32.46 lakh vehicles, reported a 9% increase in sales to 2.86 lakh vehicles compared to 2.62 lakh in the corresponding month last year.

 

Bajaj Auto Ltd reported a 24% growth in motorcycle sales to 2.03 lakh units in April against 1.64 lakh last year. Its sales had declined 20% to 18.32 lakh units in FY08.

 

For TVS Motor Company, a 4.81% y-o-y sales growth to 1.09-lakh units in April 2008 was its best increase since January 2007. The company had seen major reverses and its annual sales had dipped 19% to 11.51 lakh units in FY08.

 

Honda Motorcycles and Scooters India saw scooter sales dip 1.73% to 48,293 units in April compared to 49,143 units in the same month last year. The company’s total sales saw an increase of 8.29% to 70,988 units in April.

 

Maruti Suzuki India posted a 22.37 % increase in sales to 59,539 vehicles, compared to 48,652 units in April 2007. However, sales were lower than March when it sold 64,421 cars. Hyundai Motor India saw domestic sales grow 36.7% to 21,501 vehicles. However, the increase in exports was much higher and grew 63% to 18,500 vehicles against 11,341 in previous fiscal. GM reported a 24.34% jump in sales at 5,563 vehicles.

 

 

 

49. Hero Honda To Focus On Rural India

28 April, 2008

 

Hero Honda has worked out a major expansion strategy for the rural markets and is planning to strengthen retail financing to support the initiative, that could lead to setting up of its own finance arm.

Pawan Munjal, MD of Hero Honda, told TOI that rural market would be a special focus area for the company as it is looking at new growth areas to maintain sales momentum in a shrinking market. “We have created a special ‘rural vertical’ to push growth and this would spearhead our expansion in the rural market,” Munjal said.

 

Two-wheeler penetration in rural belts is still very low with data shows that less than 10% of households own a two-wheeler. “So there is a large market to be tapped. The objective is to reach out to as many potential customers as possible,” he said.

 

As part of its strategy, Hero Honda is mapping the demographic landscape to formulate region-specific modules to tap customers at a very local level. “For example, distinct strategies are being evolved to leverage regional festivals such as Pongal and Onam in the south, Gudi Padwa in Maharashtra, Durga Puja in the eastern region, Dhanteras and Diwali in the north,” Munjal said.

 

The company is also reaching out to ‘opinion leaders’. Village haats and mandis are also being targeted to reach customers. “We already have a strong presence in the rural markets. We have had several initiatives and now we have created a dedicated ‘rural vertical’, with which we are consolidating all these initiatives and looking ahead,” Anil Dua, senior V-P said.

 

Munjal added that the company is tying up with new partners, including local cooperative banks and financing units to have a robust financial model. Setting up of an independent retail financing arm is an option, though Munjal said, no final decision has been taken. “If necessary, we can do it. It is something we have to look at closely. Hero Honda already has a company ‘Hero Honda Finlease’. This is currently not in consumer finance and we might even look at this if the need be,” he said.

 

The company is also expanding its distribution network to support the rural initiative. It has grown its network by over 50% over the last two years from 2,000-3,000 ‘touch points’ that include authorised dealerships, service and spare parts outlets, and dealer-appointed outlets across the country. This would be further expanded to 3,500 this year.

 

Bajaj Auto also has an aggressive strategy for rural markets and has set up a separate dealer structure—rural dealerships—for this purpose.

 

Hero Honda Plans Retail Finance Biz

26 April, 2008

 

To maintain its leadership position in the decelerating two-wheeler industry, Hero Honda, the largest two-wheeler company in the world, plans to enter the retail finance market. According to sources in the automobile industry, it is looking for a joint-venture partner in the new business.

 

This comes at a time when many financial institutions, including GE Money, Centurion Bank of Punjab and Citibank, have exited the two-wheeler finance market. Others like the market leader ICICI Bank and HDFC Bank have reduced their financial exposure in the sector.

 

The two-wheeler industry has been hit hard by the prevailing high interest rates as well as the credit squeeze in the market. Hero Honda is looking at the non-banking finance company (NBFC) route to get into the retail finance market, on the lines of its rival two-wheeler companies — Bajaj Auto’s Bajaj Auto Finance and TVS Sundaram Finance of TVS Motors.

 

When contacted, the Hero Honda spokesperson said: “There is nothing concrete at this stage. We are looking at various possibilities to increase financing options for our products in the market.”

 

Two-wheeler sales have been hugely impacted by the high interest rates and non-availability of finance from banks. The industry sales through retail finance has dropped to 60% from 75-80% a year back. Industry sales have declined 8% to 72.48 lakh units in the FY08.

 

Hero Honda managed to buck the trend of decelerating sales and maintained flat sales in the same period. Its sales grew 0.23% to 32.46 lakh two-wheelers. Through its own finance company Hero Honda wants to rectify the liquidity crunch in the retail finance market thereby generating sales for its products.

 

While the new finance arm is expected to take some time, Hero Honda is tying up with more regional and local vehicle financing partners for the time being. Hero Honda managing director Pawan Munjal, while announcing the price hike on its bikes on Monday, had said: “There is strong liquidity crunch in the finance market and we have been looking for tying up with more local and regional financial partners. Some of our dealers have their own financing partners and it should help us to net higher sales.”

 

Sources in the retail finance market say that the high delinquency in the two-wheeler finance business has forced them to reduce lending and operations. “Many banks have closed their branches in certain markets like Uttar Pradesh, Bihar and Madhya Pradesh, where delinquency is rising rapidly.

 

We have also scaled down finance to certain products like the 100 cc bikes where the financial risk are relatively higher. There is a drop in retail finance and the total automobile finance market has reduced by 15% to 20% in the past 15 months,” said a senior executive with HDFC Bank.

 

 

 

50. Yamaha Introduces G5 Bike With Electric Start

13 May, 2008

 

India Yamaha Motor on Tuesday announced the launch of Yamaha G5 106 cc motorcycle with an electric start engine priced at Rs 39,380 (ex-showroom-all India).

 

"We plan to continue gearing up our existing product line and marketing initiatives...We are paying attention at the customer who always looks for more. The new G5 is equipped with electric start as a convenient feature. With this launch, we are ready to extend our products and services," Yamaha Motor Executive Vice President and Chief Sales and Marketing Officer Takahiro Maeda said in a statement.

 

The G5 will be available nationally through the company's existing wide network of dealers and Bike Station. The G5 will be offered in 2 colours, including Deep Red Metallic K and Yamaha Black.

 

The bike is priced at Rs 39,380 (ex-showroom-all India).

 

 

 

51. Yamaha Launches New 106 Cc Bike

6 May, 2008

 

Japanese two-wheeler maker Yamaha Motor Pvt Ltd on Tuesday announced it has launched a new 106 cc motorcycle, Alba, priced at Rs 37,500 (ex-showroom) in the country.

"A lot of emphasis has been laid on shaping Alba for maximum comfort of the rider and its premium features will give consumers a new thrill in biking pleasure," company's Executive Vice President Takahiro Maeda said in a statement.

 

The new bike has a 106 cc engine with low end torque, leading to less strain on the engine and therefore longer life, it added.

 

"Since the bike has been designed for daily commuting, special emphasis has been given on shaping it for the maximum comfort of the rider," the company said.

 

Alba 106 would be available in two colours -- deep red metallic and Yamaha black, it said.

 

 

 

52. Rahee E-bikes Launched

6 May, 2008

 

RMP has launched Rahee E-bikes in the Kerala market. This electronic bike is manufactured by VLRA - A division of RMP and marketed by RMP Infotec Pvt Ltd. The key features of the bike are battery operated and will get a maximum speed of 30 km per hour and the bike will run approximately for 40 km with a full charge battery. It is pollution free and will not produce any noise. The cost of the vehicle is Rs 26,000.

 

 

 

53. Now Yamaha Sport bikes at rush hour

6 May, 2008

 

Yamaha has finally woken up to the biking enthusiasts in India, much after other motorbike manufacturers have addressed this segment. Its latest campaign looks at engaging the biking enthusiast. Accordingly, the Stop Commuting. Start Sport Biking campaign promises to give the rider a near Grand Prix experience.

 

The model in the TV commercial is just getting out of office and walking towards his Yamaha Gladiator Type SS/Type RS bike, when his mind takes over. He imagines himself advancing towards his machine at a motorbike Grand Prix. He mounts the bike and is soon zipping past the crowds. He swerves and steers smoothly to avoid the other racers (read commuters). He comes to a sharp stop when a lady walks by on the road, only to go full throttle after she has passed by. The creative agency responsible is Dentsu Communications. The film, which involved visual effects, was shot by Green Apple.

 

Though Yamaha is well up in the biking circuit – Valentino Rossi, the world No. 3, is a Yamaha rider – it hadn’t introduced this feature to its consumers until now. “With the Gladiator 125cc range, we want to provide the experience of sport biking,” says Sunil Vij, head, marketing and communication, Yamaha. The Gladiator 125cc isn’t a race bike, but with the Yamaha DNA inherent in it, it provides for the biking experience that a sport biker enjoys.

 

The Bajaj Pulsar, though not part of the professional biking scene, has been propagating sport biking for a while now. The Free Biking campaign and the more recent Pulsar Mania campaign have both been about biking thrills. When asked why Yamaha wanted to enter the biking scene in its communication at such a late stage, Ruchira Raina, executive director, Dentsu Communications, says, “Pulsar Mania is more of a gimmick, almost like a circus.”

 

Clarifying her statement, Raina says, “Almost every scene of the Pulsar Mania ad tells you that the stunts cannot be performed by non-professionals.”

 

“The Gladiator offers precise braking, angling and cornering. It isn’t a stunt bike, but a bike for riders,” he adds.

 

The Yamaha commercial depicts the rider (a professional biker) zipping through rush hour traffic. At a time when bikes have become more of utility vehicles and lost their sport biking charm, the Yamaha Gladiator intends to resuscitate the sport biking aspect once again.

 

The communication is supported by print ads and outdoor. Test ride events have been carried out across the country.

 

 

 

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