Reasons for the Shift
Auto experts attribute the market shake-up to several factors just ahead of the festival season. Ravi Bhatia, president and director at Jato Dynamics, told TOI, “This is a significant change as Hero MotoCorp has long been the market leader in the two-wheeler segment. Ahead of the festival season and based on initial signs of recovery, HMSI has ensured supplies to the network.”
Urban-Rural Dynamics
The urban-rural dynamic also plays a role in this shift. Shruti Saboo, director at India Ratings & Research, explained, “During April-July, the scooter segment continued to outperform motorcycles. While demand from rural markets has started to improve, complete recovery is yet to be seen. Meanwhile, strong demand from urban markets is supporting sales of scooters as well as mid-to-premium level motorcycles.”
Retail Sales Comparison
Despite Honda’s lead in wholesale dispatches, Hero MotoCorp remains ahead in retail sales. Hero retailed over 17.5 lakh units from April to January, while HMSI sold 15 lakh units, according to data from the Federation of Automobile Dealers’ Associations (Fada). The retail sales gap between the two stands at nearly 2.5 lakh units. However, Honda’s market share has been increasing, rising from just under 20% in April to 24.3% in July. In contrast, Hero MotoCorp’s market share has decreased from over 33% in April to 29.4% in July.
With the festive season approaching, the competition between Hero MotoCorp and Honda is expected to intensify, marking a pivotal moment for the two-wheeler market.