Bumper Diwali sale; seeing surge in proxy demand: Honda

Written By Unknown on Senin, 27 Oktober 2014 | 12.44

Second largest two-wheeler player Honda sees a massive surge in ownership replacement demand for the two-wheeler segment, in turn indicating a pick up in the economy.

Backed by Diwali sale boost, Yadvinder Guleria, Vice President-Sales & Marketing, Honda Motorcycles is confident of selling 45 lakh 2-wheeler units in FY15.

In addition, second largest two-wheeler player sees a massive surge in ownership replacement demand for the two-wheeler segment, in turn indicating a pick up in the economy.

The company has a 26 percent market share in the two-wheeler space in H1FY15. Furthermore, it enjoys leadership in automatic scooters with 55 percent market share, he says in an interview with CNBC-TV18's Latha Venkatesh and Sonia Shenoy.

Experts believe this bumper Diwali celebration will continue in next Diwali as well, on hopes of more reforms and execution of these reforms from the Modi government going ahead.

Also read:  Is Hero Motocorp best recovery play after record sales?

Below is the edited transcript of the interview:

Q: Was it a market share increase, was it more replacement demand or did you see in your buyers list a lot of first time buyers and an actual expansion of the market pie?

A: Definitely, there is a mix of buyers in the market. We do see a lot of first time buyers and maybe up to 125 CC to 150 CC category, there are a lot of first time buyers but yes. At the same time, in the entry level segment, we obviously see the maximum number of first time buyers but replacement market is also growing because now the ownership period of the two wheeler buyers in the last couple of years or I would say in last one decade has definitely reduced from earlier 8-10 years to now probably in the range of five years. So that also is giving an impetus to the two wheeler market growth.


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