Piaggio leads Bajaj in 3-wheelers

Data provided by the Society of Indian Automobile Manufacurers (Siam) show that Piaggio has snapped up a 43.20 per cent market share in the first four months of this calendar year compared to 37.60 per cent a year ago. Bajaj Auto's market share, however, has slipped to 38.95 per cent from 42.89 per cent in the same period.

Piaggio, which was earlier targeting a sustained market leadership in 2010, has now advanced it to 2008-end.

Ravi Chopra, chairman and managing director, Piaggio India, said, "We are set to achieve our target of being the leader in the three-wheeler segment this year. We will launch new products during the year to avoid product fatigue."

Although the three-wheeler segment witnessed a decline of 11.20 per cent in the January-April period this year as compared to the same period last year. Piaggio has grown by 2.02 per cent selling 49,802 units, while Bajaj Auto slipped by 19.36 per cent at 44,906 units, according to Siam figures.

Piaggio is now in talks with banks and financial institutions to come out with customer-friendly financing packages.

Rajiv Bajaj, managing director, Bajaj Auto, had said at a press briefing last week that the company did not see a revival in sales this year in both two-and three-wheelersegments owing to inadequate finance availability for vehicles.

The company, however, has promised to increase its focus on exports of three-wheelers.

"Bajaj will offset the slump in domestic three-wheeler sales with exports. The company has sold more than 130,000 units in the international market last year driven by strong demand", said a Mumbai-based auto anayst.

Both companies are, however, launching new variants this year. While Piaggio aims to launch three-four variants of existing models this year in the goods and passenger-vehicle segment, Bajaj will introduce two new variants of three-wheelers in November this year to tackle the slump.

"The demand for three-wheelers is still very strong in the market.

But owing to due to lack of financial support we are witnessing a significant drop in retail sales.

The Piaggio brand is able to exceed in sales tally despite priced at a premium due to a strong marketing strategy," Chopra said.

The domestic three-wheeler market comprising passenger and goods carriers is about 400,000 units strong. The industry witnessed a decline of almost 10 per cent last year as it sold 364,000 units.

About 58 per cent of total sales is constituted by passenger carriers while sub-1 tonne goods carrying vehicle make up the rest. The fall is primarily seen in the goods carrier segment.

Apart from Bajaj and Piaggio, the segment also involves players like Mahindra and Mahindra, Force Motors, Atul Auto and Scooters India.