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Honda aims to challenge market leader Hero

MotoCorp with China made models

Chanchal Pal Chauhan & Lijee Philip, ET Bureau Jan 6, 2012, 01.44AM IST

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  TVS| 

  Super Splendor| 

  Rajiv Bajaj| 

  motorcycle| 

  Honda Motorcycle & Scooter India| 

  Honda Motorcycle| 

 Honda| 

  HMSI| 

  Hero MotoCorp| 

  Hero Honda| 

  Hero group| 

  CD Dawn| 

  bikes| 

  Bajaj Auto 

 NEW DELHI: A year after they parted ways, the world's largest two-wheeler maker, Honda, has

thrown down the gauntlet at its former partner of 27 years, the Hero Group, with a plan to launchmotorcycles at game-changing prices.

7/31/2019 Honda Aims to Challenge Market Leader Hero MotoCorp With China Made Models

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Hero MotoCorp, the new avatar of  Hero Honda, which accounts for 46% of all bikes  sold in

India, dominates the market with models like the 100cc CD Dawn, Splendor, Passion and the125cc Super Splendor. 

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The Japanese giant, which operates in India through wholly-owned subsidiary Honda Motorcycle

& (HMSI), hopes to sell 125cc made-in-China models with an ex-showroom price in Delhi of alittle over Rs 30,000 - almost Rs 4,000 cheaper than the CD Dawn and Rs 17,000-18,000 cheaper

than the Super Splendor.

Honda currently sells such models in African markets like Nigeria.

Tatsuhiro Oyama, senior managing officer & director motorcycle operations at the Japanese

giant, told ET: "We are working out plans to gain leadership in the Indian two-wheeler market."

Honda has just launched a 110cc bike, Dream Yuga, to compete in the mass market. "Going

forward we are conducting a feasibility study for our low-cost bike that is currently made in

China and could be manufactured in India," added Oyama.

RAMPING UP CAPACITY TO MATCH HERO Along with cost-competitive models, Honda is also busy ramping up capacity to match that of the Munjals-owned Hero MotoCorp. Oyama told ET the company plans to set up a fourth plant

in India with an initial capacity of 1.2 million units, entailing an investment of Rs 1,000 crore.

The fourth plant will take its cumulative capacity to 5.2 million, not far behind the Munjals,whose current capacity stands at 6.15 million per year.

"We are aiming to sell 10 million two-wheelers in India by 2020 and target a 30% market share

to achieve leadership in India. We are market leader in scooters and now the focus is to replicate

the same in bikes," said Oyama.

To HMSI goes the credit of revitalising the scooter market after its entry in 2001; today everysecond scooter sold in the 2 million-unit-per-annum domestic market is a Honda.

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It is not just Hero MotoCorp that should be worried about

a rampaging Honda. After overtaking TVS  to take third position in the two-wheeler market inNovember, Honda now has No. 2 player Bajaj Auto  in its sights. In December 2010, the gap

between Honda and the Pune-based two-wheeler major was over a lakh, with the Japanese giant

selling 1.41 lakh bikes and Bajaj Auto 2.44 lakh.

A year later, that gap has narrowed. In December 2011, Honda had sales of 1.92 lakh and Bajaj

2.64 lakh. "To me, HMSI is Honda, the world's largest two-wheeler maker," says a cryptic  RajivBajaj. The managing director of Bajaj Auto is clearly not underestimating the threat; asked at

whose expense will HMSI's growth come - Bajaj's or Hero's - Bajaj replied: "Time will tell."

Bajaj, which has been focusing more on margins than market share, will need to get in more

products into the mass market to counter the Honda threat, reckon analysts.

Currently, it has the Boxer but that may not be enough for a company whose volume growth

comes largely from three-wheelers and exports. "Bajaj Auto has to look into the 100cc segment

to get the volumes and the market share," said VG Ramakrishnan, senior director, automotivepractice, Frost & Sullivan.

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Company Competition for No. 1 Position

Posted on April 7, 2011 by admin 

Honda a leading and fast growing company in four wheelers started more assets in two wheelersin India. According to Honda strategy it will leave behind TVS motors in next 2 years and goingto become no. 3 in India. Honda target is not much enough over it, Honda is launching 100 cc

bikes in India next year i.e. 2012. At present Bajaj Auto is at No. 2 due to its 100 and 150 cc

bikes. After launching 150cc bikes Honda will become competitor of Bajaj Auto. Same way in

next 10 years it will leave behind Hero Honda which is No. 1 presently.

You can see Honda rising after launching its First bike Honda Unicorn in 2004. This bike gets a

very good response among Indian youth. After that Honda launched more bikes and scooters tilldate and get good response from market. In last 25 years Honda gives a good support and

technology to Hero group of India. As you may aware Honda is Japanese company and has a

good technology.

Honda bikes give advance technology to Indian market. It is using Fuel Injection technology

which is prepared to comprehend ideal combustion. This ideal combustion gives a good output tobike. Due to this bike will generate lesser ignition gas and so becomes environmental friendly.

This way Honda become a good response with Hero group and will get the same. Hero group gota good experience in this field and will take advantage of it in further to remain at No.1 in Indianauto market.

A second great competitor of Honda is Bajaj Auto, which is at No.2 position in Indian Automarket. As you are aware Bajaj is going to starts its production in four wheeler market next year.

Till date it makes a good image in the customer’s eyes. Bajaj have a patent over its DTS -Itechnology. This technology raises demand of Bajaj bikes. This DTS-I means Digital Twin

Spark ignition. It means instead of one spark plug there are two spark plugs per engine cylinder.

Same way TVS India also launches its duel spark technology in bikes. TVS have a controversyover this technology with Bajaj in past, but now it resolved and TVS motors launches it’s TVS

Flame with Twin Spark Technology.

Thus there became a great competition in auto market India. Everyone is squabble for becoming

no 1. In this there are factors like technology, sporty look, mileage, speed, price and much more.

So let us see what will happen in future and what new technology came to improve this

completion. More over all the things depend on the customer’s satisfaction and feedback. So Irequest to all riders to give there feedback for respective bike.