Bajaj’s exit from the scooter segment is a blessing in disguise for Hero Honda. With just one scooter Pleasure, the company is exploring the possibilities to boost the scooter segment with more models. As of now, the demand is high –growing to 15.12% (8.91 lakh units) for gearless scooters and Hero Honda likes to capitalize on this demand. The scooter portfolio will be brightened with new models, as the sales of Pleasure hiked to 39% increase with 1.27 units from April-November 2009 compared to Bajaj’s 154 units of Kristal.
Honda Motorcycles Limited sold 4.5 lakh units in the same period despite backlog of 1lakh units as a result of labour problem during July-October 2009. With conditions coming normal, the company feels the steady flow will materialize in another three months. Hero Honda may have to face competition from its sibling HMSI, M&M and TVS .