Hero Honda to unveil two models

Pradeep Rane
20 October 2003

Mumbai: Hero Honda Motors, which controls about 45-per cent market share in the Indian motorcycles segment, is likely to launch two new models in the second half of this financial year. These aggressive launches, along with the improving market conditions, are expected to lift the growth in the second half.

The company is expecting to maintain its full-year sales target of 2 million bikes through these launches. The recent rollout of new models — the entry-level CD-Dawn and the premium segment Karizma — has helped the company to compete across the segments, according to Networth Broking.

It recently came out with new variants of the Passion and its old war-horse, the Splendor. These new launches are likely to help Hero Honda gain a market share in the coming quarters.

Hero Honda''s results for the quarter ended 30 September 2003 was in line with market expectations. Sales volumes increased by over 9 per cent year on year to 446,000 units, driven by its new entry-level motorcycle, CD-Dawn, and value terms net sales increased by 2 per cent to Rs 12.6 billion.

Hero Honda posted a net profit of Rs 1,565.50 million for the quarter ended 30 September 2003 as compared to Rs 1,398.40 million for the quarter ended 30 September 2002.

Hero Honda has maintained its overall market share of 43-45 per cent in the motorcycle segment. While in the executive segment the company has lost its market share, it has gained a significant market share in the entry-level segment.