The stronghold of Hero Honda, the small cc bikes in the domestic motorcycle front, is all about to face tough competition from rival Bajaj Auto.

After Bajaj’s decision to exit this segment was made, the company has been seeing decrease in their market share. This situation has forced Bajaj to reorganize the 100cc department for better bikes that can compete with the current leader, Hero Honda.

In the current 125cc segment, the company enjoys a consistent share and 74% share of total sales. Hero Honda, that leads the under 125cc segment, with its models Passion and Splendor, has dominated the domestic segment for a pretty long time. But, since the launch of the 100cc Discover in July, last year, the company has been seeing some growth in its share for the under 125cc segment. Though Hero Honda still dominates this market, Bajaj is showing steady growth.

Ernst & Young analysts are confident and analyzed that no single player can dominate any industry for a pretty long time as long as the other competition releases a good product at a good time considering all the factors. However, Hero Honda officials reacted with an affirmative statement that they do not negate the fact that competition is active, but so are they.

On further questions about why Hero Honda still banks on the old brands Passion and Splendor, the company defied saying that the brands are not old as they are constantly upgraded. Also, the company is assured that the returns will keep coming in as the brands are much favored.

But, apart from all the profits in the under 125cc segment, Hero Honda needs to buckle up in the above 125cc area, where it has more than Bajaj to worry about. Pulsar brand, is already giving very high returns to Bajaj with 50% market share.