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Honda expecting tougher times ahead

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  • Honda expecting tougher times ahead

    Honda Motorcycle & Scooter India CEO Keita Muramatsu says the next three to four years will be challenging years for all vehicle manufacturers. Pointing to demonetisation and BSIV emission norms, Muramatsu says the customer sentiment in rural India is recovering from the impact of demonetisation but demand is expected to stabilize only by the end of march when the new harvest season begins. Honda saw surge 79% month-on-month in January after a 20% fall in December.

    As the Indian government implements stricter emission norms and safety standards but the leveling with global standards will open up immense opportunities for the country. On the growth scale of Honda, Muramatsu says, in the last five years Honda showed 2.4 times growth and the market share doubled from 13% to 27%. Also, the investment in capacity creation has increased from 1.6 million units at a single plant to 5.8 million units across four plants.

    The demonetisation's impact reflects and influences the buying behavior of the customer and the BSIV emission norms to be implemented by all the manufacturers by end of March 2017 and both the process involves cost and budgeting for both customer and manufacturer which affects the sales and growth of the Auto Industry.


    Source: Economic Times
    Last edited by NewsReaper; 02-27-2017, 02:56 PM.

  • #2
    Re: Honda expecting tougher times ahead

    I don't understand what are they crying about ? They keep refreshing the Activas and if you go to showroom for CBR most of the sales men are not even interested in showing the bike. They did 4-5 weird versions of Unicorn which all tanked and then they brought back the old one again and there's no new CBR's launching which they should have done atleast in 2016. And I don't understand what is their problem with engine kill switch I mean who makes bikes without them in 2017 ?
    If they bring updated CBR 250/300 R then they will be back in the game even the CBR150R will sell in good numbers, and imagine bringing the CBR250RR price exactly in between Duke 390 and twin cylnders 300's . Benelli is good example.
    I love my CBR but the company is doing really shitty job to keep bikers in our country to motivated.

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    • #3
      Re: Honda expecting tougher times ahead

      Originally posted by Dandamudi Mohan Krishna View Post
      I don't understand what are they crying about ? They keep refreshing the Activas and if you go to showroom for CBR most of the sales men are not even interested in showing the bike. They did 4-5 weird versions of Unicorn which all tanked and then they brought back the old one again and there's no new CBR's launching which they should have done atleast in 2016. And I don't understand what is their problem with engine kill switch I mean who makes bikes without them in 2017 ?
      If they bring updated CBR 250/300 R then they will be back in the game even the CBR150R will sell in good numbers, and imagine bringing the CBR250RR price exactly in between Duke 390 and twin cylnders 300's . Benelli is good example.
      I love my CBR but the company is doing really shitty job to keep bikers in our country to motivated.
      You're talking as if the 2 lakh segment in this country is the most economical one for a manufacturer. It is not. 500-1000 units per month selling a 1.5-2 lakh product vs 15000-30000 selling a 100-150cc product. Guess where the money lies for them?

      They are talking about the industry in general. Meaning Every manufacturer is suffering post DeMo because people don't have enough spending power. This is what Mr.Bajaj was talking about at the annual Nascom leadership forum this past week.

      The rural bike market was growing at a rapid pace before Nov and then the last 3-4 months it has stagnated meaning the entry level mass market product sales are taking a big hit MoM which has made every manufacturer take note of it.

      As for bringing the 250RR and slotting between the Duke 390 and twin 300s you may as well keep dreaming. The existing 250RR is already as expensive as the R25 in its home country so if they even decide to import it here it will be on par or cost a tad more than the R3 at 4 lakhs which nobody will buy.

      It took 1 year for Yamaha to sell 1000 R3s in India. The CBR250RR on the other hand is selling 3200 units per month in Indonesia @ 3.3-3.5 lakhs per unit. To put it in perspective, that's equivalent to Yamaha's R15 monthly sales at nearly 1/3rd the price here.
      Last edited by Nithesh; 02-28-2017, 01:48 PM.
      Got a $5 head? Get a $5 helmet.

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      • #4
        Re: Honda expecting tougher times ahead

        Originally posted by Nithesh View Post
        You're talking as if the 2 lakh segment in this country is the most economical one for a manufacturer. It is not. 500-1000 units per month selling a 1.5-2 lakh product vs 15000-30000 selling a 100-150cc product. Guess where the money lies for them?

        They are talking about the industry in general. Meaning Every manufacturer is suffering post DeMo because people don't have enough spending power. This is what Mr.Bajaj was talking about at the annual Nascom leadership forum this past week.

        The rural bike market was growing at a rapid pace before Nov and then the last 3-4 months it has stagnated meaning the entry level mass market product sales are taking a big hit MoM which has made every manufacturer take note of it.

        As for bringing the 250RR and slotting between the Duke 390 and twin 300s you may as well keep dreaming. The existing 250RR is already as expensive as the R25 in its home country so if they even decide to import it here it will be on par or cost a tad more than the R3 at 4 lakhs which nobody will buy.

        It took 1 year for Yamaha to sell 1000 R3s in India. The CBR250RR on the other hand is selling 3200 units per month in Indonesia @ 3.3-3.5 lakhs per unit. To put it in perspective, that's equivalent to Yamaha's R15 monthly sales at nearly 1/3rd the price here.
        Bro I understand that and I was even aware of problem due to Demonetization but like you said effect is on the lower segment but its not like they will make a loss if they bring CBR in the 1.5-2 lakh range there are literally people who would pay extra for quality and refinement they provide and there's no solid answer from the company also.

        Coming to 250RR like you said its expensive than R25 but its more powerful than R25 but its not will be as expensive as the R3 sure it will corss 3 lakh margin I don't think it will be as expensive as the twin 300's also they are already have a plant in India where they do the CBR650F (which is totally overpriced not sure why) and just look at the Benelli's they're making good numbers in market .

        Also its not always about numbers just take Audi for example they make R8 which is there halo car guess how many do they sell compared to rest of the range. But when you have a Halo car in showroom it acts like an attraction and the people take a look at the rest of the range imagine if they didn't have R8 they will loose some numbers too.

        The whole point is what is wrong in bringing these models ? They may not sell tonnes of them but they will still sell them and make good profits. Many manufacturer's have joined the game I really don't understand why a company which took a bold step in 2011 is backing up today
        .
        Last edited by Dandamudi Mohan Krishna; 02-28-2017, 02:29 PM.

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        • #5
          Re: Honda expecting tougher times ahead

          I had read this somewhere that Honda is just going to focus on volumes in the commuter segment so that they could beat hero and become no 1 in india
          I really feel that hero and Honda should join forces there was a time when karizma use to rule now both the company are going no where in India.

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          • #6
            Re: Honda expecting tougher times ahead

            Originally posted by hd_hardikdesai View Post
            I had read this somewhere that Honda is just going to focus on volumes in the commuter segment so that they could beat hero and become no 1 in india
            I really feel that hero and Honda should join forces there was a time when karizma use to rule now both the company are going no where in India.
            That isn't true. Its only been 4 years since Honda's technical centre and research and development wing at Manesar went fully operational.
            Honda Motorcycles to make its R&D wing operational | Business Line

            So far they've created 2 indigenous concepts of which one has materialized.

            The CX-01 concept was the Hornet 160R.
            The CX-02 concept is pending.

            This year the Africa Twin will join the CBR650F's CKD assembly line.
            Got a $5 head? Get a $5 helmet.

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