HMSI targets 2 lakh 100cc motorbikes

To invest Rs 300 cr in next 3 years

Honda Motorcycle & Scooter India (HMSI) is looking at initial production volume of about 2 lakh units for its all-new 100cc bike, slated for launch early next year.

HMSI is the wholly-owned arm of Honda Motor Co in India and by entering the 100cc bike segment, it would come in direct competition with sister company Hero Honda Motors (HHML).

But Shinji Aoyama, the president and CEO at HMSI, said, "We are not looking at a volume product (by entering the 100cc space)….we will do about 2 lakh units a year initially. The Hero Honda 100cc bikes are a very good means of transportation and we do not need to interfere with that."

Aoyama said that Honda 100cc bike, which is being developed from scratch, would be given a 'sporty' look and features to make it distinct from existing 100cc bikes. Another senior company official indicated that this product may not be priced at the bottom end of the market, where most 100cc bikes are today.

But Aoyama's disclosure on volumes for the 100cc bike indicates that this premium, sporty machine is obviously not going to make an immediate dent in the 100cc universe, where Hero Honda is the clear leader.

According to latest Society of Indian Automobile Manufacturers figures, the 75cc-125cc bike segment sold over 34 lakh units in April-January this fiscal. So HMSI's 2 lakh unit ambitions appear rather modest.

Meanwhile, Aoyama also announced Rs 300-crore investment in capacity expansion and new launches over the next three years. This would be over and above the Rs 900 crore that has already been invested in the country till date. HMSI is looking to sell 10.5 lakh units this fiscal.

Sindhu Bhattacharya/ DNA-Daily News & Analysis Source: 3D Syndication

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