Because the Target is Splendour Pro, not Passion Xpro.
Passion Xpro would be almost 4- 4.5 K dearer to this(& 1.5 K dearer to Dream Yuga). Hence Xpro has never picked up sales, though the Passion Pro and Splendour pro still sells in good numbers.
Prices-
Splendour Pro- 53K
Dream Neo - 53.5 K (with Tubeless tires)
Dream Yuga - 56K (with TL tires)
Passion pro - 55.7 K(without tubeless tires)
Passion Xpro - 57.5 K(with TL Tires) and 60K (with front Disk break)

what exactly is the difference between neo and yuga?
from what I see, the powertrain is similar between the two.
won't neo cannablise the sales of yuga?

also, the difference between the fully loaded neo and yuga is less 3k, while the base model neo and yuga has a price difference of close to 5k. what could be the reason behind this?

from pics put up, I can see cost cutting in neo when compared to yuga (ex. the rear handle bar), but how has neo saved 5k when compared to yuga?

you are living in wrong world bro..Honda may be a big brand for people like us but (as I live in North India so I have seen) in states like Punjab & Haryana..there are only two bikes in the market..if you can afford then Bullet otherwise a Splendor it doesn't matters if Hero makes it or Honda or HH to them, as splendor itself is a brand for those guys..
moreover those who buy these commuter class bikes also look for its resale value..Splendor's resale value is much much better than its competitors..which also plays an important role while buying the bike,even if it costs couple of thousand extra at that point!!

@^^ +1

The kind of people who buy the Splendor are very unique. Honda would have a hard time surpassing Splendor sales no.s even if it had been cheaper than the Splendor.

My Mama is one of the people who are blindfolded devotees of Splendor / Passion series. Just last month, he bought his 8th bike(not sure, could be more) powered by the same 97.2cc Honda engine in the past 16 years. This time around, I wanted him to buy a Dream Yuga instead, we even had a fight over this, but to no avail. He sold his Blue Passion Pro to buy a Red Passion Pro . Here is the picture of the bike.

His reasoning was, because he changes his bike so often, resale is something he cannot compromise on. This perception of resale value is also one place where new names from ANY brand cannot compete with Splendor or Passion, no matter how good they may be in comparison. And whatever Honda might make, it doesn't have comparable resale, at least in my Mama's (and by conjunction, a typical Splendor/Passion in a Semi-Urban area buyer's) mind.

Honda needs to concentrate in tier 2 and tier 3 cities alongwith Rural areas. They need to boost awareness, offer buyback schemes for their own bikes 2/3 years after purchase to improve the perception of resale. It will help them even if they don't actually buy-back anything after 3 years. The least it will do is improve the perceived resale, and hence improve sales.

Are these the only differences between the two ? I think some more cost cutting may have been done to differentiate between the two. Or is the strategy by Honda to increase Dream Yuga price and push Dream Neo in its place

check this



Post no 28

Yes bro you have a very valid point there and splendor itself is a big brand. However if you look at Honda's performance for last year they grew around 30% while the industry has grown in negative figures which only means that some of customers from other brands have moved on to Hondas portfolio. Also their bikes have grown very well than the scooter. All in all what i meant to say is Honda is brand which cannot be taken easily and its very strong. This does not mean there are no local brands of Indian origin but only question is which will turn out stronger in the coming days.

Honda will be No1 soon, may be in 2015-2016...but growth can change as we don't know how will Hero EBR bikes will turn out??

The Dream Neo looks slightly better than Dream Yuga and with no major difference between the two bikes, Dream Neo have high chances of killing the sales of Dream Yuga.

Also how easy is to fit the Disc brakes in these bikes, will it be a direct fit or change of front forks,etc required. Will it also void the warranty.?

Passion X Pro seems to be a better option which is good in looks and have some goodies like trip meter, digital display, etc.

Just a clarification required. Hero is still using Honda's technologies and support to manufacture their bikes and this will continue till 2014. I guess hero has been doing this for a long time and till 2014 hero bikes will be good as before, just that we can't find the word "Honda" anywhere in the bikes.

What will happen to models like Splendor and Passion post 2014, will they bring in new engines in these bikes or still continue will the current engines without Honda's support.

Dream neo will definately kill sales of dream yuga. Initially it will sell in respectable numbers just because of novelty factor but no body can comment on its future. All of us are aware of the fact that its not the first attack on splendour brand. Boxers, champlions, discovers, xcds, platinas, calibers and tvs stars with their n no of variants and ad campaigns like daudta, bhaagta, 108kmpl, 100kmpl etc. etc.. tried everything to defeat the king called splendour but it didn't happen and its not going to happen in near future ....According to mebrand value wise splendour= tata 407= tata truck= colgate toothpaste= MDH masala= facebook= mc donalds = maggi noodles = tata salt and its not that easy to displace the mentioned legends from their positions....

Re: Honda Dream Neo launched: 110 cc: Price 43,150 INR ex-showroom Delhi

I own it for the past 3 months and I say it is an awesome bike overall. Modern age splendor that gives 67-70 kmpl consistently.

Re: Honda Dream Neo launched: 110 cc: Price 43,150 INR ex-showroom Delhi

Bro, I heard splendor developed by honda wont be discontinued.. hero paid some license amount till 2014 end. Then after that, they wont pay royalty but continue using honda 97cc tech. in future model also. Honda is good and generous company, they dont want to make Hero bankrupt , so the agreement is bit lineant . But the wise man's choice is to switch to current Honda ie HMSI. Dream neo better than splendor in every aspect.