Bajaj Auto Plans Africa & Europe Entry
Bajaj Auto is exploring markets in Africa and Europe for its motorcycles, particularly the Boxer, CT100 and the Pulsar. The company, which exported more than 6 lakh motorcycles, is seeing rising sales of the low cost Boxer and CT100. Bajaj is taking a step ahead in registering the Pulsar brand name in countries before it begins marketing the motorcycle.
"We have had instances in the past where companies had registered the Pulsar brand in their names when they realised we were coming. So, we are selling the bike under the Pulse brand in Iran and as the Rouser in the Philippines," Ashok Saxena, general manager of Bajaj Auto's international business said.
[Via: motorbeam]
Hero Honda invest Rs 350 cr for expansion plans
Hero Honda India has recently announced that the company has chalked out an Rs 350 crore capacity expansion and modernisation plan this fiscal.
This comes at a time when close competitors of the largest two-wheeler manufacturer are running at less than full capacity due to significant inventory-carrying costs amid weak demand.
Hero Honda is ramping up capacity at its Haridwar facility to take it to over a million units this fiscal. This would take the company's overall production and sales targets for 2009-10 to over four million units.
Managing director Pawan Munjal said the Rs 350 crore would be spent in capex and to upgrade bike engines to meet the new emission norms which come into effect from April next year.
Besides, expenses on putting up a gassifier plant at Gurgaon (to phase out furnace oil and diesel usage), a new paint shop at Haridwar and modernisation of the existing facilities at Dharuhera and Gurgaon will also be undertaken within the earmarked investment.
Currently, 4,000 bikes a day are being made here and the company has shifted production of two of its biggest selling models - Splendour and Passion to avail of tax benefits.
[Via: Infibeam]
Changed Plans For Two Wheeler Market
The two-wheeler pecking order is witnessing a change. The market leader Hero Honda Motors gained ground and consolidated its pole position while No. 2 Bajaj Auto lost market share to relatively smaller and newer players such as Honda Motorcycle & Scooter India and even India Yamaha Motor.
The gap between Bajaj and TVS Motor Company narrowed to less than 1.5 lakh units overall, triggering concern whether Bajaj would be able to maintain its second position in the domestic pecking order this year.
Information from the Society of Indian Automobile Manufacturers (Siam) showed the gap between overall sales of the two companies is just 2.7 lakh units; in the scooter segment and HMSI (654,319 units) continues to be streets ahead of Bajaj (9692 units).
Surjit Arora of brokerage Prabhudas Lilladher said "Hero Honda's mobike share went up to 59.4% between April and February last fiscal, whereas Bajaj's slipped to 22.3%. But the massive decline reported by Bajaj last fiscal may well be contained going forward".
In addition to this, Yamaha Motor is picking up steam, after several rounds of restructuring of local operations and the introduction of a strong product line-up. For Honda Motorcycle, a solid grip on the scooter market and increasing penetration in bikes augurs well.
[Via: Infibeam]
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