<b>India 2006:</b> Production and export goes up
NEW DELHI, India – Indian bicycle major Hero Cycles Ltd manufactured 3.1 million bicycles in the first nine month of fiscal 2006-07 and it is expected to wind up the year with a total production of 4.15 million units. Hero produced 3.9 million bicycles in the financial year 2005-06. Hero exported 350,000 units in April-December […]
NEW DELHI, India – Indian bicycle major Hero Cycles Ltd manufactured 3.1 million bicycles in the first nine month of fiscal 2006-07 and it is expected to wind up the year with a total production of 4.15 million units. Hero produced 3.9 million bicycles in the financial year 2005-06.
Hero exported 350,000 units in April-December 2006-07, while bicycle exports expected to reach 485,000 units by end fiscal. Hero’s export turnover for the first nine months of the ongoing fiscal reached US$ 15 million and it is likely to export bicycles worth US$ 20 million by end 2007.
While Sahibabad based Atlas Cycles (Haryana) Ltd produced 875,000 bicycles in April-December period. The total production is expected to reach 1.15 million unit by March 2007 compared to 911,000 unit last year. Atlas exported 52,000 units in April-December valued at US$ 2.10 million. Bicycle export expected to reach 75,000 units. The company would likely to register turnover of US$ 45 million compared to US$ 35 million in the earlier year.
Hamilton Cycles manufactured 184,609 units in April-December 2006. The company expected to produce 242,000 by the end of fiscal in March 2007. Hamilton exported 95,569 bicycles in April-December 2006, valued at US$ 3.40 million (INR 151 million). Hamilton likely to export 120,000 units by end of fiscal compared to 76,608 units exported in the previous year. Hamilton likely to conclude the year with turnover of US$.9 million (INR 400 million) to improve on the 2005-06 turnover of US$.7 million (INR 308 million).
Avon Cycles has manufactured 1.13 million bicycles in April-December 2006. The company is expected to product 1.6 million bicycles against 1.37 million previous year. Avon exported 0.270 million units valued at US$ 6.20 million. While it is likely to export 0.370 million units up from 0.300 million in the whole year. While company’s total turnover is likely to reach US$ 15.25 million compared to US$ 14.7 million last year.
Motorcycle sales close to 6 million next year
Motorcycles continue to dominate the Indian two wheeler market in the first nine months (April – December) of fiscal 2006-07 as per the figures released by the apex body of automobile manufacturers Society of Indian Automobile Manufacturers (SIAM). Close to 5 million motorcycles hit the Indian roads as 4,959,864 units sold in the period at a growth of 16% compared to 4,282,930 units previous year same period.
While scooters lagged way behind at merely 685,616 units at a negligible growth of % against 675,729 sold last year. Mopeds have also made an improvement of 5% as 255,485 mopeds came on the road against 242,826 units last year.
While India’s total two wheeler market comes closer to 6 million in the first nine months at 5,900,965 units (+13%) against 5,201,485 units sold. India’s automobile market including all categories of vehicles swells to 7,505,009 over 6,503,333 units at a handsome growth of 15%.
More cars than motorcycles
While India produced 5,417,522 motorcycles registering 19% growth over the previous year production of 4,555,461 units. Whereas, scooter production declined by 10% to 684,514 units (761,259). Production of Mopeds also down by 3 per cent at 273,738 units (283,044). Two wheeler production rises mainly on the demand of motorcycles. Two wheeler production raised by 14 per cent at 6,375,774 units (5,599,764). While India’s complete automobile market already crossed the 8 million mark at a growth of 16% to 8,251,063 (7,118,499) units.
India’s two wheeler export up by 26% to 481,107 units over previous year’s of 382,564 units. Motorcycles remain in the limelight with 420,633 units (282,824) shipped for export, almost doubling the export growth to 49%. Whereas, scooter export declined almost 54%, reduced to 30,166 units compared to 66,183 units last year. Moped exports too down by 16 per cent at 30,308 units (33,557). Over all India exported 770,209 units of vehicles of all categories at a growth of 29 per cent over 598,289 units.
Hero Honda Motorcycles
Hero Honda Motorcycles Ltd (HHML) continues to dominate the Indian motorcycle market, sold 2,329,158 units (2,155,479) at a growth of 8%. While Bajaj Auto Ltd (BAL) is fast catching up with market leader, it sold 1,620,541 units (+28%, 1,267,297). TVS Motors remains the third dominant force in the motorcycle segment, sold 650,596 units (+19%, 546,322). Yamaha too improved by 17%, sold 179,932 units (153,370). Honda Motorcycles & Scooters India (P) Ltd grew by 49 per cent at 107,585 units (72,151). Niche market player Royal Enfield continue to impress Indian bikers as it’s sales registers a growth of 8% to 22,093 units (20,382). While Suzuki’s solo Indian venture sold 46,223 units, whereas, Kinetic reduced to lesser player with motorcycle sales dipped by 81% to 3,736 units (19,536).
Honda Motorcycles & Scooter India (P) Ltd and TVS Motors made marginal improvement in their scooter sales. Honda sold 370,454 scooters (325,185) at a growth of 14%. And TVS also hold the fort at a marginal growth of 4%, sold 191,465 units (184,929). The new entrant in the scooter segment HHML sold 72,106 scooters. Whereas, one time scooter major BAL’s scooter production declines to merely 11,482 units (94,229) at a decline of 88 per cent. While Kinetic Engineering sold merely 1,537 units (-58%, 3,642) and Kinetic Motor Company Ltd sold 38,572 units (-27%, 52,597).
Market leader in Moped segment TVS sold 237,701 units (198,943) at a growth of 19%. Kinetic Engineering & Majestic Auto went down to 13,149 units (-34%, 19,963) and 4,635 units (-81%, 23,920) respectively.
Bal largest motorcycle exporter
BAL emerged as the largest exporter of motorcycles, the company shipped 223,114 units (+98%, 112,779) & down South TVS exported 61,516 units (40,767). HHML, Honda Motorcycles & Scooters (P) Ltd & Yamaha also registered positive trends at 78,532 (+8%, 72,815), 3,190 (+45%, 2,197) & 51,407 (+24%, 41,375) respectively. Kinetic’s export dipped to 1,344 units (-73%, 4,961), while Royal Enfield’s export marginally declined by 5% to 1,530 units (1,607).
All major players registered negative scooter export growth with BAL merely exported 1,103 units (8,227), Honda Motorcycle & Scooters (P) Ltd 17,473 (27,351) & TVS 6,734 (8,928) respectively. Kinetic registered growth of 79% at 3,859 (2,152), while HHML exported 976 scooters in its first year of entering the market.
Kinetic exported 5,559 mopeds (2,422), while Majestic Auto & TVS export declines to 13,560 (19,510) & 11,189 (11,625) respectively.