* CLSA downgrades Bajaj Auto
to 'sell' from 'underperform', while maintaining its 'sell' rating on Hero MotoCorp
, citing weak demand growth, a consumer shift toscooters over motorcycles, and rising competition.* CLSA adds the share of scooters in industry sales continues torise at the expense of motorcycles, while 125 cc bikes sales arealso rising, segments in which both Hero and Bajaj are weaker.* The brokerage says this shift in sales trend would mostbenefit Honda Motorcycle and Scooter India, the domestictwo-wheeler unit of Honda Motor Co
.
* Bajaj Auto shares falls 1 percent, while Hero falls 0.5percent.