Motorcycle sales drop, manufacturers gearing up for patch

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Profits of motorcycle makers went down by 17%. This was primarily due to:

  • Rising cost of borrowing
  • Rise in cost of production.
  • Burning of money to capture market share.

Manufacturers are fast gearing up with plans and models to patch up this bad phase. Honda and Yamaha Motor Co. expand in the country with new products.

Suzuki is planning to expand its base in India with launch of 125cc scooter somewhere in September. They are also going to launch a 150cc motorcycle after their new scooter model launch somewhere in March 2008. Atul Gupta, vice-president, sales and marketing, Suzuki Motorcycle India Pvt Ltd predicts that scooter segment would contribute 20% of their total target. The 150cc Suzuki bike will be pitched against Pulsar and Hero Honda’s CBZ Xtreme and Honda Unicorn. The days are not far when Indian roads would have zooming Hayabusa and GXR both 1000cc+ bikes.

TVS Motor Co. is trying to expand to Indonesia and Latin America and cut down their dependence on troubled Indian automobile market. However, they would try their best to mend the lost grounds. TVS is planning to launch new variants of Victor and Apache motorcycles. TVS is also eyeing to venture into three-wheeler and scooter markets. TVS have big plans in Jakarta with future plans to expand its base in Thailand, Vietnam and Philippines.

Bajaj Auto and Hero Honda both are planning new model launches in the fiscal year ending March 31.


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