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Honda To Locally Assembly High End Bikes In India

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  • Honda To Locally Assembly High End Bikes In India

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Name:	2013-Honda-CBR500-superbike.jpg
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ID:	1975735Hero MotoCorp from the top spot, a task which was earlier set to be accomplished by 2020. Now though, the company is expecting to become the leader in the 2-wheeler segment by as soon as 2015.

    To reach the top spot is not going to be easy for Honda and thus the company has been going all out to woo customers. Honda has set up an R&D base in India and is expanding capacity and sales outlets. The 2-wheeler giant has no plans of exporting products from India as China will serve that purpose. Thus all production will be utilised for domestic consumption only. Honda is the leader in the scooter segment and is present across all segments (except 400- 800cc, where it plans to enter soon). In order to boost brand image, Honda plans to promote its superbikes by pricing them aggressively.

    Honda already sells the CB1000R, CBR1000RR Fireblade, VFR1200F and VT 1300 CX (Fury) in the Indian market, all of which are brought down via the CBU route. Just recently, the Indian government hiked duties on CBU motorcycles, resulting in these products getting even more expensive. Thus Honda is now planning to set up an assembly plant for its high-end motorcycles. Bringing bikes through the CKD route will result in prices dropping by a considerable amount, thereby appealing to a larger section of enthusiasts.

    Although Honda remains silent on which motorcycle they will start locally assembly on first, we feel the company will bring the CBR500R via the CKD route, putting it bang against the Kawasaki Ninja 650. Till date no superbike is assembled in India as the volumes are too low to justify the investment in plant and suppliers. However Honda can still afford to invest as the company wants to dominate in every segment and has been earning good profits thanks to its lower capacity offerings.

    Source -
    http://www.motorbeam.com/bikes/honda-motorcycle-bikes/honda-to-locally-assembly-high-end-bikes-in-india/



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  • #2
    Topic Approved but closed for now.

    I don't think it is a news.
    I think its just a prediction based on a statement made by KEITA MURAMATSU, President & CEO, HMSI. Here, check this article, guys: Autocar Professional

    ""In future there will be demand for big motorcycles. We are checking on it as they attract very high import duty, on CBUs. Local assembly is one of the possibilities that we will look at in the next few years to reduce costs.""
    ""Customer demand is just not increasing. The challenge will be on how to guarantee the same quality if we assemble and produce them locally as the 1000cc bike clocks speeds close to 300kph and has to go through several checkpoints. At present, the quality guarantee comes from our Japanese factory in Italy. These will not be easy to manage in our Indian factory. Here we can consistently try to maintain low cost in terms of assembly but quality-wise it is not so easy,""
    Where in the above text is the CEO actually clarifying something about the planning of local assembly? They are just "checking the possibilities" that too for the "next few years".
    So, my question is where did Motorbeam get such an info, which is not present elsewhere on the internet? What is their source? A Private interview?



    Topic closed as we can't allow members to waste their energy on a probable rumor, spread by just one source.
    Other staff members can open the topic if they have the info.
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