Scooters, motorcycles and mopeds post varying growth - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • Aug 26, 1999 - Scooters, motorcycles and mopeds post varying growth

Scooters, motorcycles and mopeds post varying growth

Aug 26, 1999

Bajaj Auto, India's largest 2-3 wheeler manufacturer, and LML have failed to match the two-wheeler industry sales growth in the first four months of FY2000. However, other manufacturers like Hero Honda, Escorts, Yamaha, and TVS Suzuki have outperformed the industry growth. Over the period April-July 1999, the two-wheeler segment posted sales growth of 4.5%. However, Bajaj Auto and LML both posted a decline in sales of 13.4% and 15% respectively. On the other hand, Indo-Japanese manufacturers like Hero Honda (37.8% growth) and TVS Suzuki (24.9%) have posted strong performances, with even Escorts registering a 29.4% rise.

Motorcycle market share in July 1999

Within the two-wheeler segment, the surge in motorcycle sales (up 23.1% in April-July 1999) continued from where it left off in FY98. Again, as was the case in FY98, Hero Honda leads the motorcycle charge (18% sales growth) over its competitors - TVS Suzuki and Bajaj Auto, and commands 42% market share.

In April-July 1999, the moped segment posted marginal growth of 1.1%, while scooter sales shrunk by 11.2%. The decline in scooter sales growth vis--vis motorcycle sales growth seems to suggest that motorcycles are the flavour of the year, with consumers preferring its savvy look to the staid look of scooters.

The global trend marked by a shift in preferences from scooters to motorcycles has caught on in the Indian two wheeler segment. Pre-dominant scooter manufacturers like Bajaj Auto and LML will find it a struggle to match the blistering sales growth of Indo-Japanese manufacturers like TVS Suzuki and Hero Honda.

One of the drivers of scooter sales is a good economy backed by strong industrial growth, which has been conspicuous by its absence over the past two years. Scooter manufacturers opine that unless that happens scooter sales will continue to trail motorcycle sales.

Equitymaster requests your view! Post a comment on "Scooters, motorcycles and mopeds post varying growth". Click here!


More Views on News

ASHOK LEYLAND Share Price Down by 5%; BSE AUTO Index Down 3.6% (Market Updates)

Apr 19, 2021 | Updated on Apr 19, 2021

ASHOK LEYLAND share price is trading down by 5% and its current market price is Rs 111. The BSE AUTO is down by 3.6%. The top losers is ASHOK LEYLAND (down 5.3%).

More Views on News

Most Popular

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

A Stock with 700% Return Potential Comes with Additional Payoffs (Profit Hunter)

Apr 15, 2021

Narayana Murthy was one of the first unicorn founders to get the backing of this entity...

Why Did the Market Crash on Monday? (Fast Profits Daily)

Apr 13, 2021

In this video, I'll you what I think is the real reason behind yesterday's market crash.

A Unique Sector for Short-Term Profits (Fast Profits Daily)

Apr 12, 2021

This ignored sector could deliver big short-term profits.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms


Apr 19, 2021 09:45 AM