> Honda's new bike ?

Rahul_Devil · 09:31 PM

NEW DELHI: Honda has decided to independently manufacture 100 cc motorcycles, which account for more than 80% of partner Hero Honda’s current sales.

The Japanese auto major’s 100% subsidiary, Honda Motorcycle and Scooters India (HMSI), is planning to enter the 100cc market, where Hero Honda’s Splendor and Passion command the lion’s share and where it proposes to build future growth. Honda’s near-term plan is to step up production at its existing facility to about 100,000 vehicles a month, about one-third of Hero Honda’s current monthly production level.

HMSI president & CEO Yukihiro Aoshima told ET, “We know that 100cc is the largest volume-generating segment in India; so we are planning to enter this segment to gain volumes.” While about 65% of all motorcycle volumes come from the 100cc segment, for Hero Honda, this segment commands more than 80% of its monthly 300,000 unit (average) sales.

HMSI has already introduced models in segments that overlap with Hero Honda-it launched the 125cc Shine last year. Hero Honda has Super Splendor and Glamour in the same category. Similarly, Hero Honda’s 150cc Achiever is in the same segment as HMSI’s Unicorn. However, the 100-110 cc segment has been Hero Honda’s mainstay and the company has reiterated its commitment to this big volume market.

The company expects to sell about 7 lakh units in the current financial year. “We wish to touch about 1.2 million units in the next two years, which we can produce from our current factory. After that we will think of a second plant for two-wheelers,” Mr Aoshima said.

HMSI is also considering products in the big bike segment. “The purchasing power of the Indian consumer has increased significantly. We are, therefore, considering a bigger segment bike up to 250cc or maybe less,” said Mr Aoshima.

Source : Honda to race in 100cc segment-Two-wheelers-Auto-News By Industry-News-The Economic Times