Next phase of competition - Automobile Industry

Next phase of competition - Automobile Industry

“Who will be the next two wheeler champion ”

Today every automobile company is fiercely competing with each other in clutter market to increase their market share whether it is two-wheeler or four-wheeler, everywhere there is tough competition.

Most interesting will be to see the competition between HeroMoto Corp and Honda. Both parted away after 27 year having work together as JV. One is vying to save its market share and later one want to establish itself well known player in the market and increase market share and somehow is becoming successful also. Honda has become 3^rd largest seller of two wheelers surpassing TVS in recent time and lagging behind from Hero and Bajaj. On other side Hero is continuously trying to save its market share and trying to show to market that, yes, we can survive without Honda. Hero has done well after parted away. Hero’s sell after partition is better than industry growth and increased its market share.  Hero got the liberty to export product overseas and increase its presence which will help it in future growth. But thing is who will be the winner in Indian market.

Honda is thinking to launch China made low cost bike in market to capture the price conscious Indian market at game changing price which is main source of their market share or revenue. Honda has already launched Yuga to compete with Hero Moto’s Splendor, Passion and Super Splendor in mass market.  Honda is giving touch competition to Hero in 150 Segment by it Dazzler and Sign.

I think the most important thing will decide the fate of these two companies in coming time will be there new product launch and their positioning in the market.

Let’s have a glimpse on both product market situations

     Hero  

           +Having good brand recall in the market

      +Having strong products portfolio

           + Having strong distribution system

           +Having freedom to export overseas

           + Excellent rebranding from Hero Honda to Hero Moto Corp

          - Absence in the premium  bike segment

    - Lack of R&D centre

          - First time independent in market

          - Most of the products have similar features and low on design and innovation

Honda 

+ Having strong R&D system
 + Having good brand image in the market

     + Having technically sound and better mileage product

- Not having strong distribution system as Hero
-  Not having strong brand recall in rural market as Hero
-  Lack of understanding of Indian Market

 

I think it will be interesting to see the next phase of competition between these two companies.