We’ve been getting news on Hero MotoCorp which has come up with 2 new models, an all new global strategy and so on. Now let’s get back to the parent company which was the ‘Honda’. HMSI is likely to come up with a 100 cc bike in the entry segment to catch the masses and to increase its market share in India, which is the world’s second largest market for two wheelers.
According to Economic Times, ‘Honda Motors has appointed five management teams across India led by Japanese executives to create a new decentralised marketing structure for consistent sales.’
It seems that the Japanese maker is considering the idea of working on a new bike based on the CD platform of HMC’s. Hero’s CD Dawn and CD Deluxe have the highest sales when it comes to bikes built on the CD platform.
This yet to be designed bike is targeted exclusively for the rural market which contributes almost half of the volumes to the nearly 5 million bikes Hero sells every year. While the company has been launching high displacement bikes like the CBR 250R, this strategy of Honda is considered to be one of the most important one.
“The company is currently focusing and tweaking bikes relevant for the Indian market to get closer to the customer”, said Mr. Abdul Majeed, Auto Practice Leader, PwC. The 100 cc bike segment is what led to the huge success of the earlier Hero Honda which is the volume segment. The Splendor and Passion brand of bikes were the most successful among the lot. Last year, Honda sold its 26% stake in Hero Honda to India’s Munjal family while the technology agreement between Hero and Honda permits the former to use the joint name in products till 2014.
Honda, which owns the CD brand globally jointly with Hero, is likely to bring in a new improved engine with fresh design cues to attract young and rural India. Hero’s claim on the CD brand exists only till 2014, by when Honda wants to emerge as a major player in the Indian circuit. However, the company said it aims to emerge as a major player in India in the next few years as it comes up with strategies to consolidate.
With the present strategies that Honda uses like launching an exclusive bike for a rural market, the company is travelling in the right path towards its aim of emerging as a major player in the Indian two wheeler market.
What do you have to say about the company’s strategy and the new bike to be launched? Leave your thoughts below.
Regards,
M.Naren.
Author – BikeAdvice.in
