Auto firms: Mixed signals

With the Splendour and Passion Plus models doing well, the Rs 10, 331 crore Hero Honda is likely to be a star performer in the September 2008 quarter, having sold 27-28 per cent more. In the June 2008 quarter, India’s biggest motorcycle maker posted a sales growth of 16 per cent and an operating margin of 12 per cent. The bike maker has an edge over competitors because many of its customers do not opt for financing schemes. Also, its sales are not skewed towards either urban or rural markets, which is probably why it has weathered the downturn in the industry better than its peers. What’s more, it has been able to increase prices by about Rs850 in August. Bajaj Auto, on the other hand, is losing market share--- volumes grew by just 6 per cent in September and by about 8 per cent between April-September 2008. With... [read full story]