Bajaj auto loses 2nd position to Honda

Bajaj auto which one came close to snatch the no 1 position from Hero Honda is now pushed back to 3rd position.

Dismal performance by Bajaj auto in last several quarters cost the 2nd position.On the other hand, Honda can jump to

its skies, while Hero Honda retains the 50%+ market share, its direct subsidiary Honda Motorcycles and Scooters India

managed to reach the 2nd postion in a period 6 years.

While in September, Bajaj was ahead of HMSI by as much as 72,262 units, the lead narrowed down to just over

10,000 units in October. And in November, HMSI beat Bajaj. Remember Bajaj lost the no 1 position to Hero Honda in 2001.

Bajaj Auto MD Rajiv Bajaj was quick to dismiss the trend as “premature”. “Corporate sales ranking is never done on a monthly or quarterly basis. Its always on an annual basis. As of now, we are number 2. In my view for this financial year a verdict is premature before April 1, 2009. As for the next year, let’s see who is ahead on May 1, 2009,” Bajaj said.

“The fact that HMSI has emerged Number 2 in November shows that our efforts to reach out to customer are paying off… HMSI has been in India for six years now and we have been expanding our dealer network to reach more customers in smaller cities. Our increased supplier network has also helped us deliver superior products at reasonable price,” M Takedagawa, head of Honda’s south west Asia operations, said.

13 thoughts on “Bajaj auto loses 2nd position to Honda”

  1. Bajaj Should accept first of all ,that it has lost the position to HONDA,acceptong realities and working towards it ,is the best move…rather than running away from it.Educated buyer still swear by Honda engine quality.When I bought a bike,I bought a Honda , but inside my heart,I knew buying an equally good Indian bike will give me more happiness. I hope ,Bajaj improves its quality of bikes to japanese standards,on marketing side they are much better and aggresive,but sadly marketing is one part ,when it comes to automobile ,buyer prefers long term quality … Amit Mehndiratta

  2. BAJAJ bikes are selling in high numbers but their quality is very worst . bajaj bikes become noisy after 2 years , lot of maintanance , very poor designing not safe to ride ,afterall indian bike … bajaj sucks

  3. Actually, it is a bit too early to rank Bajaj’s position, but it cannot be denied that a 6 year old subsidiary has overtaken them this month. Bajaj has nobody but themselves to blame for the situation they are in right now. I appreciate their efforts for using flashy technologies like LCD speedo, patented flexible numberplates, adding extra spark plugs and so on. But there are more important things they need to concentrate to consolidate their marketshare. Lets analyze few of them 1) They introduce bikes with so much of enthusiasm & marketing effort, and within an year, the bike is no longer in production. ex: Wind 125, Caliber 115, Boxer, Kristal, CT100 are just to name a few 2) They claim extraordinary fuel-efficiencies like 108 kmpl, whereas the reality is 70-75kmpl. People who have some knowledge of bikes will know that its under std test conditions. Majority of the customers are not aware of it. Wont the customer feel cheated when he finds the reality after buying? Will he suggest such bikes to his friends? This way, Bajaj is indirectly losing potential customers. 3) Quality. I know, this is debatable. Bajaj products have been catching up with Hero Honda in terms of quality, but they dont seem to be “neck-to-neck” yet. One would argue that Honda might have better quality but their prices are higher. Yes, its a known fact that quality demands premium. But think about this. Would you prefer replacing a part costing Rs.100 every year or Rs.150 once in 3 years? I guess Indians are beginning to realise this factor now. (Having said that, I do not endorse the obscenely high prices demanded by HH for their high end Karizma bike spare parts.) The above points mentioned are arguments for their declining marketshare and are in no way indicative of their product performance. They have great bikes. Its just that they need to revise their strategies towards customers.

  4. ya gp u r right..and ur first point is the main point behind failure of bajaj…….there is no stability in bajaj products….u purchase a XCD and next year it will be discontinued.

  5. Bajaj has to be blamed for it. Poor quality (product and service) is detrimental in the long run for any company (Look at Kinetic and LML). Even when they were selling scooters they were at peak position when there was hardly any competition. And then Honda made life so difficult for them in the scooter segment, that they had to stop the production of Chetak. Bajaj has to improve the quality of the product and service manyfolds to claw back into the competition. Today with many options availabe Bajaj is obviously not the preferd choice

  6. Think about it, you pay 90k for P220 which has lots and lots of problem. I own a 220 and i am tired of so many issues the bike has. My bro who bought a P150 6 months back is so tired of the quality of his bike, he is selling it and going for Yamaha. We obviously do not recommend bajaj to any body. And Rajiv bajaj’s statement only proves that they are not ready to accept the fact that their products quality is the worst in the market today. The sooner they realise the lesser will be the pain. In the 150 cc segment Pulsar is obviously the last choice today. In Premium segment R15 with its much better quality is a better option to 220.

  7. Total Chain Of Suppliers Of BAJAJ AUTO needs to be evaluated,on The Terms ,Quality-Input For Quality, Payment They Receive From 1st Tier Vendors,Market Assement Of Bajaj Brand Needs To Be Done,Or There Is Sure Hell Ahead For BAJAJ AUTO LTD……

  8. today no other bike can match the Quality of Honda…, even Hero Honda is far behind Honda, juz because of Economical bikes, hero honda is at first position, but even they do not meet the specific requirements a bike does.. even the material they are now using is not so good, and this makes it cheaper and economical… One can Blindly Trust Honda’s product without any second thoughts.. Cheers to Honda…!!!

  9. Bajaj not even know the meaning of quality.The main motive of the company is to attract the customer through the eye catching advertisement and also profit through large volume. For example there is no advertisement for honda products but people are still crowded in the honda showroom.Really I proud to own the honda brand bike “TRULY A WING RIDER”

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