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Honda Motor bets on 100-cc bikes for rural push in India


NEW DELHI | MUMBAI: Japan's Honda Motor, the world's largest motorcycle maker, is betting on the small capacity 100-cc economy bikes as it embarks upon a rural push in the world's second biggest two-wheeler market, said people with knowledge of the development. The Tokyo-based firm, which separated from its long-term Indian partner turned competitor Hero MotoCorp, has appointed five management teams across India led by Japanese executives to create a new decentralised marketing structure for consistent sales, people from the industry told ET.

The Japanese two-wheeler maker is working on a new version of the CD platform in the 100-cc segment, where Hero's CD Dawn and CD Deluxe have the highest sales. Honda's new bike based on the 100-cc technology is targeted at India's vast rural hinterland that contributes almost half of the volumes to the nearly 5 million bikes Hero sells every year. The thrust on rural market is a reversal of sales strategy for Honda, which has so far been garnering most of its sales from cities and big towns.

"The company is currently focusing and tweaking bikes relevant for the Indian market to get closer to the customer ," said Abdul Majeed, auto practice leader, PwC. The 100-cc bikes laid foundation for Hero MotoCorp, erstwhile Hero Honda , to emerge as world's largest twowheeler firm in terms of volumes. Last year, Honda sold its 26% stake in Hero Honda to India's Munjal family while the technology agreement between Hero and Honda permits the former to use the joint name in products till 2014.

Honda, which owns the CD brand globally jointly with Hero, is likely to bring in a new improved engine with fresh design cues to attract young and rural India. Hero's claim on the CD brand exists only till 2014, by when Honda wants to emerge as a major player in the Indian circuit. Honda Motor did not reply to an email query from ET about its rural thrust and new marketing strategy. However, the company said it aims to emerge as a major player in India in the next few years as it comes up with strategies to consolidate.

Source: Honda Motor bets on 100-cc bikes for rural push in India - The Economic Times


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We should soon be seeing a 100cc bike from Honda soon, as they're under not much obligation from Hero anymore. And in India, the 100cc market is around 55% which is a big factor for investment in the segment. Despite profit per unit being lower than other segments, the volumes make up for it.

They should meanwhile launch a reliable 100cc bike under any other brand, as CD brand won't be usable until 2014. Now, who was that person who said "What's in a name?". But in any case, they should do their homework before launching it, rather than hurrying up and making errors.

MG

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airbase

I pity myself being among companies who cant literally go beyond the typical 100-150 cc segment.

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jd666

^^ thats where the volumes are... what to do...

I wonder how are they gonna pitch the logo in rural areas...

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aargee

Rightly said;

Couldn't get this point JD

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Satyamzma

even rural population is shifting towards discover 125.....

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princesirohi

well, if hero has benifitted from honda in terms of technologies, then surely, this move by honda has showed, that, they too have learnt something from hero and that is-- how to rule in terms of numbers. and that is a good thing considering they have CBR250 at top and they will be launching some products in 100 CC segment too. so they will have a complete range of products-- and that seems to be the mantra for success in indian bike market , and every manufacturer- who is seriously preparing to rule indian roads have a similar strategy ...... like BAL.

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Nithesh

i remember somebody had to argue with me over here when i said "the only reason Honda doesnt have a bigger portfolio in the bike market is due to its partnership with HH. Honda already had 100cc bikes in the HH stable and were thus focussing more towards the scooter market which has been very successful so far"
I also added that "Once Honda moves away completely from Hero, they will start expanding their bike market"
And somebody put a "fanboy" tag on me that day and i believe that was my first day at xbhp

Seems my prediction was just about right there
But im still waiting to see how long it will take for Honda to expand their plants and thus increasing output capacity

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Noor

Honda Motorcycle to launch 100 cc bikes in India

NEW DELHI: Honda Motorcycle & Scooter India, a unit of Japan's Honda Motor Co , plans to launch a 100 cc motorbike in India early FY13, Naresh Rattan, marketing head, said on Wednesday.

The two-wheeler maker also expects to manufacture 1.2 million motorbikes from its Rajasthan plant by March 2012 and an equal number from its Karnataka plant in the first half of 2013, the company said in a statement.

Source - Honda Motorcycle to launch 100 cc bikes in India - The Economic Times

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j4zb4

I think he is talking about "Be a wing rider"... It was easy to market that wings logo in Urban India... Would it be as simple to market it amongst the rural population...?

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