Since '02 xBhp is different things to different people. From a close knit national community of bikers to India's only motorcycling lifestyle magazine and a place to make like minded biker friends. Join the #16YearsOfxBhpCelebrations click here.

WE DESIGN ON

Lenovo ThinkPad
Magazine
Castrol Power 1

Scan – see – think – act.

Our Partners

User Tag List

Results 1 to 9 of 9

Thread: In rural gambit, Honda drives into used 2-wheeler business

  1. #1
    Rusted Rony's Avatar
    Join Date
    Apr 2010
    Location
    MH-02
    Posts
    1,648
    Mentioned
    4 Post(s)
    Tagged
    0 Thread(s)

    Arrow In rural gambit, Honda drives into used 2-wheeler business

    Published: Wednesday, Mar 23, 2011, 2:48 IST | By Neha Rishi | Place: Mumbai | Agency: DNA

    Honda Motorcyle and Scooter India Pvt Ltd has aimed for nothing less than the top spot in the Indian two-wheeler market within the next 10 years.
    The Japanese giant has already started taking baby steps in that direction.
    Besides gearing up for entering the mass market 100cc bike segment the company also plans to enter into second-hand two-wheeler market, the first of its kind venture by a player in the segment.

    Naresh Rattan, head of operations (sales and marketing) said as part of a pilot study, the company has set up five Best Deal outlets in Bangalore, Delhi, Thane, Ahmedabad and Punjab. We want to study how to reach the customers who are currently not able to buy Honda products. We will be refurbishing the products and also offering a six-month warranty, knowhow, spare replacement, branding, etc, Rattan said. Honda has similar operations in Thailand where it has a separate factory that refurbishes old bikes for second-hand sale. Rattan said in India too if they are able to achieve high volumes in this market they might consider a plant that will cater to refurbishment of two wheelers. Honda hardly has a presence in the rural market now nearly two-thirds of its sales come from the urban areas. Entering the second-hand market will help us penetrate the rural areas, it will also help us retain customers. There is no need for Honda to get into this business but we want to learn from the business model and we are serious about it, Rattan said.

    Abdul Majeed, automotive practice head at PricewaterhouseCoopers, said the second-hand market has been a successful business model for four wheelers so far. I was expecting this move to happen in the two-wheeler space as well. What Honda is trying to do here is get into the nook and corners and not only create a brand but also get closer to the customer. In the two-wheeler segment its important to be present in the Tier II and III towns and that is what Honda will do now by intensifying its distribution network there. It is only a matter of time when the other two-wheeler manufacturers also enter the second-hand market, said Majeed.

    Honda will close this financial year selling 16.5 lakh units and plans to sell 27% more, or 21 lakh units, in the next fiscal. Of this, 45% will be contributed by its Activa scooter and 20% by Shine. According to industry data, entry-level motorcycles with 100cc-125cc engine capacities comprise more than half of the over 9 million motorcycles and scooters sold in India each year.

    The two-wheeler market is poised to grow to 20 million by 2020 and Honda aims to have a 33-35% market share in the growth, this also translates into a vast pool of customers for its second hand bike market venture. Until January 2011 Honda has sold 70 lakh units over a decade of its operations in India.

    In its scooter category Honda sells Activa (110 cc), Aviator (110 cc) and Dio (102 cc) and in bikes its portfolio consists of Shine (125 cc), Stunner (125 cc), Unicorn (150 cc), Twister (110 cc), CB 1000R, CBR1000RR and VFR1200F. HMSI bikes are at premium compared with its peers in the respective categories.

    For its 100 cc bike, which will be launched next year and will be developed in Japan, Shinji Aoyama the outgoing president ad chief executive officer said the company can use its CB Twister engine (110 cc) and also choose from the wide range of Hero Honda products.

    Hero Honda engines are old so if we plan to use them we would have to improvise upon them, he said. Also in the works is the finance arm of the company. Rattan said talks are on with Indian banks to form a joint venture in order to set up a NBFC.

    Source : In rural gambit, Honda drives into used 2-wheeler business - Money - DNA
    Last edited by Rony; 03-24-2011 at 03:01 PM.
    LIVE AND LET LIVE
    Please Contribute ->
    Weekend Getaways for Mumbai Tourers !!!

  2. #2
    Super Moderator sunilg's Avatar
    Join Date
    Apr 2004
    Location
    ghaziabad
    Posts
    8,243
    Blog Entries
    1
    Mentioned
    179 Post(s)
    Tagged
    0 Thread(s)

    Default

    News approved.
    (Been There Done That) x 3.25

  3. #3
    Rusted darkknight's Avatar
    Join Date
    Oct 2008
    Location
    Panvel , Navi Mumbai
    Posts
    3,694
    Mentioned
    39 Post(s)
    Tagged
    0 Thread(s)

    Default

    someone should probably ask honda to first supply new vehicles on time-- a wait period of 6 months for activa & more than 4 months for commuter, shine is a serious deterrent to any sales
    [SIGPIC][/SIGPIC]


  4. #4
    Rusted Rony's Avatar
    Join Date
    Apr 2010
    Location
    MH-02
    Posts
    1,648
    Mentioned
    4 Post(s)
    Tagged
    0 Thread(s)

    Default

    Quote Originally Posted by darkknight View Post
    someone should probably ask honda to first supply new vehicles on time-- a wait period of 6 months for activa & more than 4 months for commuter, shine is a serious deterrent to any sales
    For that we can look forward to this news => http://www.xbhp.com/talkies/news/172...ng-demand.html
    LIVE AND LET LIVE
    Please Contribute ->
    Weekend Getaways for Mumbai Tourers !!!

  5. #5
    Rusted princesirohi's Avatar
    Join Date
    Jan 2009
    Location
    Pune -- Mumbai
    Posts
    8,260
    Blog Entries
    3
    Mentioned
    137 Post(s)
    Tagged
    1 Thread(s)

    Default

    rony is hereby awarded the title of "newsreader"

    Rony "THE NEWSREADER"


  6. #6
    Rusted Rony's Avatar
    Join Date
    Apr 2010
    Location
    MH-02
    Posts
    1,648
    Mentioned
    4 Post(s)
    Tagged
    0 Thread(s)

    Default

    Quote Originally Posted by princesirohi View Post
    rony is hereby awarded the title of "newsreader"

    Rony "THE NEWSREADER"

    OT: lol ... thanks for the compliment but only NewsReaper deserves that title ... I am just trying to fill up the vacuum created by his mysterious absence !
    LIVE AND LET LIVE
    Please Contribute ->
    Weekend Getaways for Mumbai Tourers !!!

  7. #7
    Rusted princesirohi's Avatar
    Join Date
    Jan 2009
    Location
    Pune -- Mumbai
    Posts
    8,260
    Blog Entries
    3
    Mentioned
    137 Post(s)
    Tagged
    1 Thread(s)

    Default

    Quote Originally Posted by Rony View Post
    OT: lol ... thanks for the compliment but only NewsReaper deserves that title ... I am just trying to fill up the vacuum created by his mysterious absence !
    well said, bro...................................

  8. #8
    Rusted riot's Avatar
    Join Date
    Dec 2008
    Location
    Delhi
    Posts
    618
    Mentioned
    25 Post(s)
    Tagged
    0 Thread(s)

    Default

    will they sell used SBKs too?
    Street racing is for Squids trying to make up for their small equipment

  9. #9
    Rusted Rony's Avatar
    Join Date
    Apr 2010
    Location
    MH-02
    Posts
    1,648
    Mentioned
    4 Post(s)
    Tagged
    0 Thread(s)

    Default

    Quote Originally Posted by riot View Post
    will they sell used SBKs too?
    That is what even I am wondering .... though chances are too low !
    LIVE AND LET LIVE
    Please Contribute ->
    Weekend Getaways for Mumbai Tourers !!!

Similar Threads

  1. Replies: 3
    Last Post: 03-23-2011, 10:55 AM
  2. Honda to double 2-wheeler sales in 2-3 years
    By NewsReaper in forum News
    Replies: 3
    Last Post: 09-04-2010, 01:10 PM
  3. Honda PCX125: first stop-start two-wheeler
    By NewsReaper in forum News
    Replies: 5
    Last Post: 08-26-2010, 08:48 PM
  4. Replies: 5
    Last Post: 08-19-2010, 12:51 AM
  5. Replies: 1
    Last Post: 07-23-2010, 02:31 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •