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Honda, the biggest Japanese two-wheeler brand in India, is keen on expanding its portfolio of entry-level motorcycles, with a planned addition in the coming weeks.
Honda Motorcycle and Scooter India (HMSI), the country’s third biggest two-wheeler producer, will add a new bike under the Dream series brand shortly, its third such product in that segment, sources said.
Sales under the Dream series (comprising Yuga and Neo) more than doubled in 2013-14, helping HMSI to grow 36 per cent to 3.6 million units. The Dream series grew 116 per cent to 565,000 units compared to 261,000 sold in 2012-13. The entry bike segment (up to 110cc) is a 6.8 million units a year market, 65 per cent of the total. Though the segment grew only four per cent last year, no manufacturer is ignoring it, considering its size.
Asked if Delhi-based HMSI would expand its product portfolio in the economy segment, Y S Guleria, vice-president (sales & marketing), said: “Keep your expectations high; we will explore more.”
Entry bikes have a big following in villages, where fuel efficiency influences buying decisions. These are capable of delivering more than 60 km a litre on an average, going up to 85 kmpl.
Honda is raising focus on this segment. It has put the potential launch of a big-engine premium concept motorcycle on the back burner. The CX-01 was unveiled at the Auto Expo and was to go for ‘fine tuning’ before readying it for launch in 2015 or 2016. It is the first motorcycle developed entirely by HMSI’s own engineering division, also based in India. HMSI has instead opted to put more focus on the Dream series for the coming period and expand its reach in rural areas, site for two-thirds of Honda’s 1,000 new sales outlets planned for this year.
