chassis.

if people want it for around 90k, then they can expect the same cbr 250 like quality.

^^ unlike normal buyers, most of the people going for CBR250R/150R kind of bikes would be knowing a thing or two about their bikes. If they compromise on a vital component like chasis, then that amounts to changing the character of that bike itself. IMO, it's a very bad idea, wouldn't help to build perception of Honda.

@vrugonnab :

You making sense to me. Considering 150cc mill churning out 19.5bhp@10500rpms, I am sure Honda has invested a lot in technology. And pricing it around R15V2 (going by your theory) will be difficult unless quality is compromised. But I wonder, R15 is equally a potent bike minus quality issues. How did Yamaha manage to give such a brilliant product for a such a price range? I am sure CBR150R can be priced around R15 if Honda gets all equations right. Though I don't know what those equations are. What I believe - If Yamaha can do it, it can be possible for Honda as well.

Optional C-ABS please. D:

Hey buddy, R15 is fully localized and i'm sure even Yamaha is charging a good premium. Honda giving CBR150R at that price may mean that they will have to be satisfied with drastically low margins compared to CBR250R, while putting in same effort. "Low margins" may not be acceptable to Honda, that's what I was talking about.

Another thing we need to notice is that competition landscape will drastically change with arrival of Duke 200. So, at least some of the people looking at R15/CBR250R may eventually end up with Duke 200. So, they will have to keep in mind that gap between CBR150R & Duke 200 price is also sufficiently enticing for the buyer. As a competitor another thing to keep in mind is revamped pulsars are around the corner. So, even if Honda is able to offer it around 90-1 lakh, it makes lot of sense to them to wait till Pulsars come into the scene. Coz, in all probability improved P220 might just land in that price bracket, worse still an all new P250 may come into picture.

Guys, all those thinking that CBR150R can't be priced at R15's level, let me tell you that Bajaj makes more than 20-22% margins on their bikes, and despite that their bikes are one of the most economical.
Rajiv Bajaj himself said that he won't invest in any business giving less than 20% Net Returns/ Year. And why not? Even Banks give you 10-11% and businesses have a risk.

Take R15. Don't think for a moment that R15 costs about Rs. 80,000 to the company... No! Its more like 65-75k. Add Company Profit to it which is a big share (20% or so), then add distributor's cost, add dealers' cost and finally you reach the ex-showroom price.

So, even while importing, Honda has a decent margin which they can easily play with, just to kill the competition. At the best, they'll go into a low profit zone for this CBR for an year or so... right?

And one more thing- 250R might have a tourer chassis, but 150R should be getting a racy one. Honda won't risk it. vrugonnab is spot on right on this.

+1 to that

how can a company's 250cc & 150cc be priced alike.....dont drag fs's & R15's case here on pricing.....even if it outs 20bhp...it could not be worth more than 1.3L
be sensible guys...didn't u'r money have any value....?

Bike margin and Net Returns of any business are in no way directly related...
For Bajaj i can say for sure because i have seen the production of Bajaj bikes and the related finances.... cant say the profit margin and stuff but ya not at all directly related...
Yamaha can afford lower pricing only because it has deep pockets and it is using PENETRATIVE Pricing for establishing a base while Bajaj is making pure profit on account of overall low cost of production and domestic production advantage....

Would love to be corrected if i am wrong....
Cheers
Sid

^ Yes, you're right that Percentage Profits can't be directly related to sales price. But, indirectly they are related.
For example, if Bajaj prices its P135 8% lower, the return on investment/year might reduce maybe by 2-4% only but its not exactly predictable as there are other models too and P135 sales might increase too.

My point is that companies can play with the sales amounts to get profits if they expect to get high sales for the particular model. The 65-75k Figures are totally assumed and suggestive in nature.

Even Nokia did it with Nokia N8-00 mobile phone. It is the best 12 MP Cameraphone on the market with a large cam sensor, but its price? Just 22,600 INR on release. Why? Because they had Androids, iPhones, etc, giving them the competition! (I happen to own it)

if this bike is gonna price near to R15...then it should be tough time for Yamaha

Ya i also agree.... provided all other variables constant.... cant help this other variable constant thing being a CA..

Now who dug this old thread from the grave. Please continue discussion in existing thread for CBR 150.

Thread locked.