Honda Motorcycle and Scooter India (HMSI) will add multiple products in the mass commuter segment to boost volumes, as Japanese auto major Honda Motor Company Limited is looking at shoring up nearly a third of its revenues of its two-wheeler business from the Indian subsidiary over the next eight years.
Sales from the Indian arm account for 13 per cent of revenues for the Japanese two-wheeler maker. By 2020, this is expected to more than double to 30 per cent. The company, which launched its second mass offering — Dream Yuga — in the Indian market on Tuesday, is looking at adding on a third product in the commuter segment over the next two years to rev up numbers. Market leader and former partner Hero MotoCorp has half-a-dozen models in the category.
HMSI president and CEO Keita Muramatsu said Honda was currently developing a low-cost motorcycle for the African market. “The product is not suited for introduction in India, as customers here look for added features in motorcycles. We are working on introducing another product in the mass segment in India,” he said.
The entry-level segment accounts for 70 per cent of overall motorcycle sales in the country. Honda, with a single product called the CB Twister, has a marginal share of two per cent in the category.
Dream Yuga (competitor Hero MotoCorp’s models don 100 cc engines at the entry-level), is priced at Rs 44,642. It is the cheapest motorcycle Honda has in its portfolio globally. Hero MotoCorp, with six products priced between Rs 36,300 and Rs 45,050, sells three out of every four motorcycles in the mass commuter segment.