Honda to launch a low-cost motorcycle to take on Hero's Dawn

Discussion in 'Indian Automotive Scene' started by Car Lover, Feb 2, 2013.

  1. Car Lover

    Car Lover New Member

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    The Indian two-wheeler space has been largely commuter segment driven and the largest selling motorcycle company Hero rules the roost when it comes to the low-end segment of the motorcycle market. But after its split from the successful JV with Hero, the Japanese major Honda Motorcycles and Scooters India (HMSI) which was largely a scooters maker has stepped its focus on motorcycles market and gearing upto compete directly with its former partner.
    According to a report in Business Standard, Honda is looking at introducing a low-cost motorcycle for the Indian market. The proposed bike, to be priced between Rs 30,000 and Rs 40,000, would be the cheapest HMSI model, pitted against Hero’s HF Dawn in a market segment where Hero MotoCorp has nearly 70 per cent share. Hero sells HF Dawn, its cheapest bike, for Rs 36,600 in the Indian market. Honda’s cheapest offering, the 110-cc Dream Yuga, on the other hand, is priced above Rs 44,657 (ex-showroom, Delhi).
    Honda joins another Japanese rival Yamaha to focus on low-priced bikes. Yamaha, which wants to increase its market share in India, has spelt plans to make the world's cheapest motorbike in India. The bike designed for emerging markets such as India would also be exported to Africa.
    The report quoted Atsushi Amataka, president, Honda Research & Development India as saying “We are examining the possibility of introducing a low-cost motorcycle for India.” He reportedly declined to give any timeline but indicated the company was looking to price the motorcycle in the Rs 30,000-40,000 price band. The new model would be developed indigenously from scratch at HMSI’s technical centre at Manesar. HMSI’s sales have more than doubled to 230,031 units in the category after the introduction of the Dream Yuga, its first serious mass offering. The model has sold 200,000 units since its launch in May 2012. However, HMSI’s share in the segment still remains marginal at 4.69 per cent.
     

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