Honda surpassed Bajaj in the two-wheeler market.Reuters

Honda Motorcycle and Scooter India (HMSI) overtook Bajaj Auto in domestic and overseas sales in July to become the country's second largest two-wheeler manufacturer.

According to latest sales figures declared by HMSI for July 2013, the company registered sales of 2, 87,177 units including exports, out of which 147,635 units were motorcycles and rest 139,542 were scooters. This is the first time for Honda to have sold more motorcycles than scooters, thanks to Honda's Dream series.

"Honda has created a new chapter in its Indian operations with three new records. In July 13, Honda have achieved highest ever sales, highest domestic market share of 24per cent and also became second largest player in domestic and export sales in two wheeler industry," said YS Guleria, HMSI vice-president (sales and marketing).

"This is largely attributed to the overwhelming demand for Dream series and the increase in production with start of second production line at the third factory in Narsarpura, Karnataka".

During the same period, Bajaj Auto registered a plunge in sales by 18 percent. The company didn't see a rise in two-wheeler sales despite the roll out of new models like Discover ST and Discover 100T. The labour issues at Bajaj's Chakan plant seemed to have resulted in the slowdown of the company. As the issue has been resolved, Bajaj is now expected to reclaim its lost glory in the market.