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Thread: Honda plans to compete with Royal Enfield in India

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    Rookie rideon74's Avatar
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    Default Honda to make a middleweight motorcycle in India to take on Royal Enfield

    Looks like the 250cc - 500cc range has some interesting years ahead of it.

    This unexpected move by Honda has been reported today by Mr. Amrit Raj of Mint news as follows:

    "Honda Motor Co. has formed a team of engineers from Japan and Thailand to work in India and develop a global middleweight motorcycle to compete with Eicher Motors Ltds Royal Enfield, a top executive said.

    We (have) already allocated the people, some from Thailand and some from Japan to India to make a new concept mid-sized motorcycle in India, Noriaki Abe, president and chief executive officer (CEO) at Asian Honda Motor Co. Ltd, said in an interview. Abe will take over as CEO of Hondas global motorcycle business on 1 April.

    The planned middleweight motorcycle will compete with the ones from the stable of Royal Enfield, he added.

    If we can make that product, we can export that to even Japan.

    We have always had a market between 250cc and 400cc in Japan but the motorcycle market in Japan is shrinking.

    There, it is very difficult for us to have a very competitive model in such a displacement...cost-wise, Abe said.

    But they (Royal Enfield) have a huge scale in the Indian market and dominate that segment alone. So, it is a very interesting business model.

    If we decide, we have technology to compete with them (Eicher). Our priority was not there. But, we notice that they have very, very interesting growth. So we are preparing for that, Abe said.

    ----

    Well, the middle weight segment seems to be where all the focus is going to be for most motorcycle manufacturers in India.

    And with good reason too : this segment can attract the masses easily, assuring volumes and brand identity. It's possible to carve out a win-win for manufacturers and consumers.

    Royal Enfield's Siddhartha Lal has certainly proved his point in believing in the Indian motorcycling scene and with heady success.

    Now everyone's out get a bite of the pie. But who's complaining?
    - ​When Life throws you a curve, Lean into it! -

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    Default Re: Honda to make a middleweight motorcycle in India to take on Royal Enfield

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    Default Re: Honda to make a middleweight motorcycle in India to take on Royal Enfield

    I do not have much hope from honda.

    God knows why they are putting a team of Japanese & Thai Engg on this when they need to add Indian engg into it as they know the local conditions better.

    Having said above, by the time they will finish the development , testing et all ... market would have moved on. Almost everybody is trying to move into 250 cc -500 cc segment & honda is still investing in the segment...Didn't they have this range covered already in japan.. why invent the wheel again.... Only honda can answer perhaps...
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    Default Honda plans to compete with Royal Enfield in India

    Honda Motor, Japan has deployed a team of engineers in India to develop a global middleweight motorcycle. Honda sees a potential growth & business in the middleweight motorcycles falls between 250cc to 750cc after observing a successful growth rate achieved by Eicher Motors's Royal Enfield in India. Particularly for the last 5 years and still, Royal Enfield's sales rate graph is towards a phenomenal upward growth. Honda considers Royal Enfield as its rival on middleweight motorcycles in India. To start with, hoping Honda would plan to develop a 500cc engine in India.

    Previously, Rajiv Bajaj, MD, Bajaj Auto has given an indirect statement in his media interviews that Bajaj Dominar 400 was launched to compete in the middleweight motorcycle segment, especially with Royal Enfield motorcycles. Now Honda is also getting into the game on middleweight segment motorcycles in India.

    Speaking on this Noriaki Abe, president and chief executive officer (CEO) at Asian Honda Motor Co. Ltd said, We have already allocated the people, some from Thailand and some from Japan to India to make a new concept mid-sized motorcycle in India. If we can make that product, we can export that to even Japan. We have always had a market between 250cc and 400cc in Japan but the motorcycle market in Japan is shrinking. There, it is very difficult for us to have a very competitive model in such a displacement...cost-wise.But they (Royal Enfield) have a huge scale in the Indian market and dominate that segment alone. So, it is a very interesting business model. If we decide, we have technology to compete with them (Eicher). Our priority was not there. But, we notice that they have very, very interesting growth. So we are preparing for that.



    Source: Hindustan Times

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    Default Re: Honda plans to compete with Royal Enfield in India

    The CX-02 concept is said to be a CB500X in Indian clothes. Having said that, the more I look at the Rebel 500, the more I think its aimed at targeting the Harley Street 500/750 and the 500 Bullets. The RE/HD sales are growing and only fools would sit back and let other manufacturers take up the pie.
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    Default Re: Honda to make a middleweight motorcycle in India to take on Royal Enfield

    So they are going to make the bike in India. Hmm, that would be nice. What would be your guesstimate on the pricing of the rebels? @nitesh
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    Default Re: Honda plans to compete with Royal Enfield in India

    There are two Rebels. One is based on CBR300R engine, other based on CBR500R engine. if the CX-02 concept turns into a CB500X bike then its more likely that a Rebel will accompany it. From what I know the Rebel 300 is for very limited markets but the 500 will be exported to many countries.

    Dont know if they will think about locally manufacturing Rebel 500 here but it might be a CKD at around or a little more than the Street 750's price.
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    Default Re: Honda plans to compete with Royal Enfield in India

    Quote Originally Posted by Nithesh View Post
    ....The RE/HD sales are growing and only fools would sit back and let other manufacturers take up the pie.
    Perhaps this point is exactly what made Honda finally wake up and hear the exhaust roars from our Indian soil.

    What could work for them is the Rs. 2-4L pricing range (if they ever get around to it, that is).

    Models could purely be along the lines of the cruisers like the Rebel (400cc/500cc) or the sports tourers like the CX-02 concept. More options for tourers that don't have any dependability or bone-rattle issues always welcome.

    But I'm thinking that they really, really should be looking at something thats Clean, Mean and Naked... Like the Honda CB1100 in an 400cc or 500cc avatar. Why? Because of the huge untapped potential in our country for bikes that are neutral in stance and ride posture. Affordable yet fast enough to smile through the highway miles. And with a visor attachment provision please.


    Name:  Honda-CB1100.jpg
Views: 907
Size:  64.9 KB


    It'll fit right in with the other pricier nakeds - the Bonnevilles, the Street series from HD. All this only if they can nail it with the pricing vs. VFM strategy like Bajaj did with the Dominar (though the sub-2L Rs. pricing would be unrealistic for Honda). They'll need to get that right if they're thinking of taking any bites out the mid-segment pie.

    It's been great decade so far with more and more bikers deciding to happily plonk down Rs. 2-4L in the mid-segment. This is evident by the success of the smaller bikes from the Benelli stable or the huge interest in the 2017 Duke 390.

    There's lots of room still left for Honda to make us happy. Should they? Yes, of course. Will they?
    Last edited by rideon74; 03-19-2017 at 12:34 PM.
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    Post Re: Honda plans to compete with Royal Enfield in India

    Every manufacturer wants to have a piece of the pie of Royal Enfield, not a loss. Opens up a wide array of options with even better technology and better performing machines. RE's are over priced for what they offer and fancy color schemes aren't going to pave the way for any betterment in the long run. RE needs to up their ante especially when it comes to offering reliable technology. But I think the current status quo wouldn't worry RE in any significant way.

    Cheers!
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    And the guy lived happily ever after and rode motorcycles and watched sport on a big screen TV, went fishing and surfing, and played golf a lot, and drank beer and scotch and had tons of money in the bank and left the toilet seat up and farted whenever he wanted.


    THE END

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    Default Re: Honda plans to compete with Royal Enfield in India

    Honda? The company that makes amazing bikes of all kinds in all segments and sizes everywhere else in the world, but only sells the same commuter bikes and scooters in India, despite the likes of KTM / Benelli / etc setting up shop here and actually flourishing for several years now, with no signs of slowing down?


    Honda already makes several amazing cruisers, even in the small / midsize range from 300cc up to the liter; yet steadfastly refuses to sell them here. They're still ignoring the now-obvious fact that there is indeed a hungry market for the mid-size motorcycle segment. Still, their attitude is that all us Indians want are affordable, simple, cheap-as-dirt commuter machines and nothing else. Apparently, to them, no one in India wants to have any actual fun on two wheels.


    So forgive me but I'm not holding my breath in anticipation here.

    ----consecutive posts auto-merged-----

    Quote Originally Posted by Nithesh View Post
    the more I look at the Rebel 500, the more I think its aimed at targeting the Harley Street 500/750 and the 500 Bullets. The RE/HD sales are growing and only fools would sit back and let other manufacturers take up the pie.
    I would give my left nut for a Honda Rebel. It seems, in every possible way, to be the perfect bike for all my needs. But this is Honda we're talking about, so there's no point in waiting for something that will never come.


    Of course, I hope I'm wrong. But I'm probably not.
    Last edited by marcussantiago; 03-19-2017 at 06:58 PM.
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