Honda Motors does not seem to miss on the minutest of opportunities to level up and even overshadow the popular image of Hero MotoCorp, not only in the domestic market but in international regions as well. In view of its desperate attempt to carve a niche in the auto industry, Honda recently introduced an all new 125cc engine bike Ace in Africa. It is believed that the move is directed towards boosting the sales volume and subsequently expand its market share in the African auto industry.
The two-wheeler market of Africa has been in news for quite some time now, and speculations regarding its emergence as a relevant and useful target for the two wheeler majors is reaching a crescendo. As a matter of fact, Bajaj and TVS, the two celebrated names in two-wheeler segment offer almost 50% of their total manufacturing just to Africa.
However, the competition level in the region is expected to intensify, owing to the entry of the premium bike maker Honda, which is tapping the low end segment that is currently dominated by Hero MotoCorp. With the launch of its 125cc bike Ace in the African market, the fact that favours Honda is that its closest rival Hero MotoCorp, is yet to start with the exporting its products to Africa.
The 125cc Ace was launched in Nigeria last week carrying a highly competitive price tag of Rs. 31,000. Moreover, the new two-wheeler introduced by Honda is believed to be the cheapest bike present in that market, at the outset. Honda further confirms to bring about a noticeable change in the trends of the African market, as it enjoys the reputation of a good brand and a potentially sound two-wheeler producer. Honda has manufactured the new bike at its plant in China and as a result, it has been able to set a decent price that further increases its cost competitiveness.
Thus, Honda is on its way to raise the bars in the African auto market, cropping tough times for Hero MotoCorp, which ought to be a novice in the market.
