Honda recently conducted a feasibility study for a new entry-level motorcycle to take on Hero MotoCorp in the Indian market
Honda’s two-wheeler division appears to be planning to bring in a number of new products for the domestic market. The Japanese manufacturer tasted tremendous success with the Activa range of scooters as it has been the undisputed best-seller for years. Now, the brand is looking to strengthen its motorcycle portfolio in the entry-level range to take on Hero MotoCorp firmly.
Atsushi Ogata, President, HMSI told in a recent interview that the feasibility study for a new entry-level product is already done. He was quoted saying, “Of course, we have a low-end model CD110, but relatively it’s very weak compared to our competitors. It means we have never matched demand with such kinds of customer groups. So, I had committed to investigate how to enter this low-end MC segment.”
It will complement the only volume-based motorcycle Honda currently has in India, the CD110. The 110-150 cc motorcycle segment forms a huge chunk of volume in the Indian two-wheeler space. Hero MotoCorp has a variety of motorcycles pertaining to different types of customers. Honda’s upcoming motorcycle could target a similar space aiming high volume sales.
Till January of this fiscal, Hero MotoCorp led the way in the motorcycle segment with a 48 per cent market share while Honda sits third with a 16 per cent share. It must be noted that Honda has performed well in the 110-125 cc segment. Furthermore, Honda’s 150 cc portfolio comprises X-blade and Unicorn and more focus has been put on it.
Ogata further said, “We are investigating this segment too and you will hear (from us) sooner or later.” Honda’s local range has the H’ness CB350 and CB350 RS competing against Royal Enfield’s middleweight capacity motorcycles. The portfolio could further be expanded in the near future as it targets a sales volume of three lakh units per year over the next three years.
Honda will expand its footprint as well by increasing the number of BigWing outlets from 70 to 300 customer touchpoints in the next three years. The company will also introduce an electric two-wheeler within the next financial year and we hope to know more details about it in the coming months.