tag:blogger.com,1999:blog-167798941970247934.post1891275713100290995..comments2024-03-28T12:47:14.264+05:30Comments on Bike Chronicles of India: Profits that Indian 2 Wheeler Makers made in 2010-11, Q2Payenghttp://www.blogger.com/profile/05904144587086282411noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-167798941970247934.post-19935937018246655022010-11-28T16:35:50.117+05:302010-11-28T16:35:50.117+05:30Great to see new innovative posts in this blog
Tha...Great to see new innovative posts in this blog<br />Thanks payang.santosanoreply@blogger.comtag:blogger.com,1999:blog-167798941970247934.post-82965145721533018212010-11-28T00:14:48.999+05:302010-11-28T00:14:48.999+05:30Dear Payeng,
I will mail you details about the sa...Dear Payeng,<br /><br />I will mail you details about the same. I never say anything without back up. Bajaj still pays royalty and hero honda needs to pay royalty other wise it will not be able to use Honda engine and name. The technical agreement will expire in 2014 which does not have to do anything with stake sell unless Honda terminate the technical agreement before the term. Termination of contract and stake sale is a different term.<br /><br />Thanks,<br /><br />Regards,<br /><br />Mahavir KothariAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-167798941970247934.post-24713937823798741362010-11-27T22:37:12.937+05:302010-11-27T22:37:12.937+05:30@Mahavir,
Lets wait till the final details regar...@Mahavir, <br /><br />Lets wait till the final details regarding the Hero and Honda relationship/break up becomes final and made public. Lets not jump to conclusions.<br /><br />Also <b>Bajaj pays NO royalty to anybody, for any product</b>. <br /><br />The Wind 125 is no longer in production and the current boxer (<i>for export markets and not sold in India</i>) has no Kawasaki contribution on it.Payenghttps://www.blogger.com/profile/05904144587086282411noreply@blogger.comtag:blogger.com,1999:blog-167798941970247934.post-7239247364896398352010-11-27T19:52:23.190+05:302010-11-27T19:52:23.190+05:30Dear Gautam,
Even if Honda will seprate Hero hond...Dear Gautam,<br /><br />Even if Honda will seprate Hero honda needs to pay royalty. Because they are using thier name and engine developed by them. Just like Bajaj which is still paying royalty for Boxer and platina (Wind 125) to Kawasaki. <br /><br />The deal is going to happen within a month time. We have to see if splendour and passion can survive in long run without their parent brand Hero Honda. <br /><br />Thanks,<br /><br />Regards,<br /><br />Mahavir KothariAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-167798941970247934.post-82599469079660437072010-11-27T17:11:44.389+05:302010-11-27T17:11:44.389+05:30Bajaj did not need to pay hepthy "Royalty&quo...Bajaj did not need to pay hepthy "Royalty" to any other entity, as HH need to pay Honda Motors, Japan. It may be a big reason of HH's lower profit/bike. (Dear Payeng, I remember ur article about HH paid Rs 500 cr royalty to Honda. Correct me if I m wrong.)<br /><br />If Hero & Honda will get separate, I think innitially Hero will enjoy the financial position, as it do not need to pay any fees. (Afterwards, only God knows what happen. Its interesting to see Hero survive like Bajaj did from Bajaj+Kawasaki alliance or get destruct like Kinetic...)Gautamhttps://www.blogger.com/profile/16345434250344900556noreply@blogger.comtag:blogger.com,1999:blog-167798941970247934.post-49807476002300718262010-11-27T15:12:04.895+05:302010-11-27T15:12:04.895+05:30@Mahavir, your deductions are true. Bajaj also ear...@Mahavir, your deductions are true. Bajaj also earn from the 3 wheeler business and also from <b>"Exports"</b>. In fact Bajaj is the largest 2/3 wheeler exporter from India.<br /><br />Lets see what's in store for the 3rd quarter.Payenghttps://www.blogger.com/profile/05904144587086282411noreply@blogger.comtag:blogger.com,1999:blog-167798941970247934.post-70670682272545205302010-11-27T14:55:06.305+05:302010-11-27T14:55:06.305+05:30Dear Payeng,
You can't say bajaj is making mo...Dear Payeng,<br /><br />You can't say bajaj is making more profit and equaling sales although selling more than 1 lakh bike less every month compare to Hero Honda. Bajaj is also doing three wheeler business, profit of which is included in the figure. The same is true for TVS motors which is rapidly expanding its three wheeler business. <br /><br />Actually bajaj is profitable due to higher sale of pulsar, less advertisement expenses, better three wheeler margin, better realization per bike. You will wonder to know that Bajaj Boxer is also giving EBITA of 20%. Another thing you will see surprise in quarter three earnings as Hero Honda has sold 5 lakhs bikes in the very first month. Lets see what no it can give in second month. The second or third month will show the sustainable demand as October and November figure will largely be driven by festive seasons plus the sales are dispatches they have nothing to do with dealer sale it may be more or less. So wait for second and third month figure of the third quarter.<br /><br />Thanks for posting.<br /><br />Regards,<br /><br />Mahavir KothariAnonymousnoreply@blogger.com