Hero Honda Success

Motorcycles are a hit in rural areas Monday, April 15, 2002 many an(prenominal) continue to be surprised at the ability of India s 2-wheeler element to buck the present recessionary trend in the economy. What, they train themselves, accounts for such resilience: competitive pricing? Quality? technology? Or, is it ready availability? Mr. Brijmohan Lall Munjal, chairman, Hero Group of Companies, addresses some of these issues in an interview with Soumya Kanti Mitra. What makes the 2-wheeler segment so impervious to demand fluctuations? A 2-wheeler is the some necessary consumer durable good owned by lower Middle, and middle class, households. There is multiple ownership of this ware in such households. Firstly, there is an income nucleus that influences 2-wheeler demand. Per Capita gross domestic product appendage of 3.7 per centime per annum has been pushing households up into higher income brackets. The push effect is more in lower and middle- income groups - hence the increased demand. It likewise links up with the higher contributions of the service sector to GDP; the income impact of that has been greater on lower income households. A arcsecond major reason is the inadequate public transport. The percentage of plenty who use public transport has fallen from 85 per cent to 75.

Entry-level transport options like two- and three-wheelers take a leak mostly filled this gap. They have also become a sort of necessity and and then do not show heavy fluctuations in demand. increase demand for two-wheelers from households has also led financial institutions to increase acknowl metement in a sustained way in the function three or four years. That too has imparted stability to this item, compared to others. A good proportion of sales owes to replacement demand. Are motorcycles gaining an edge over scooters? What is your experience as a market attractor? There are few fresh issues with scooters. Firstly, the technology was dated. Secondly, most were two-stroke vehicles, less fuel-efficient compared to motorcycles. The... If you want to get a full essay, hostel it on our website: Orderessay

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