Hero exported 5506 more scooters compared to Honda in 2014, despite the latter being the market leader in the Indian scooter segment.
While Honda Motorcycle and Scooter India (HMSI) is undoubtedly the market leader in domestic scooter sales; Hero MotoCorp overtook its erstwhile partner in scooter exports for 2014, four years after separation of the partnership. Hero’s achievement does come as a disappointment for Honda which currently commands 55 percent of market share in the scooter space with products like the Activa but missed the exports mark by a small margin.
Hero commands 40 percent of domestic market share and exported 84,690 scooters in 2014, a five times jump compared to the 15,776 units exported in the previous year. Honda on the other hand exported 79,184 units, witnessing an 85 percent increase from 2013. Hero’s rise in exports comes courtesy of the company’s aggressive expansion plans as it opened shops in markets like South America and South East Asia. The company also stated that good performance in markets like Nepal, Sri Lanka and Turkey have been responsible for the positive exports.
In the domestic market, Hero commands a scooter market share of 16.5 percent with scooters like the Maestro and Pleasure 110. Further expanding its product lineup, the two-wheeler giant will launch the Dash 110 later this year, followed by the Dare 125 and Zir 150 power scooter. Scooters have always been Honda’s turf in India with the best selling Activa playing the brand builder over the years. The company also launched the Activa 125 last year that has further helped the them strengthen their position in the market. In fact, the Activa also managed to be the best selling two-wheeler for several months last year, beating Hero’s Splendor to the title.
Expanding its global operations, Hero MotoCorp announced new facilities in Colombia and Bangladesh, while plants in Argentina and Brazil are also in the works. The manufacturer has been aggressive about its global presence and wants to establish sales in over 50 countries by the end of 2020. Hero is also looking to tap developed markets like Europe and North America with the help of partner EBR in the future.
Source – Business Standard