India witnessed the global launch of the cheapest motorcycle ever to roll out of Honda's stables, called the Dream Yuga, on May 15, 2012. The Japanese giant is focussing on the rural market in the country to earn more than twofold revenues in the domestic two wheeler market by 2020. Honda Motorcycle and Scooter India (HMSI) launched the Dream Yuga, its second product in 110cc segment, at Rs. 44,642 (Ex-showroom Price). In order to promote its motorcycles, the Indian subsidiary of the Japanese giant has signed up Bollywood star Akshay Kumar as brand ambassador.
Keita Muramatsu, President and Chief Executive Officer (CEO), HMSI, said, "In last fiscal, Indian motorcycle and scooter business contributed 13 per cent in Honda's two-wheeler revenue. We want this to go up to 30 per cent by 2020." Honda expects the domestic market to grow at a steady rate and hopes to snatch the top position from the Hero MotoCorp, its partner in India before both the companies parted ways in 2011.
Muramatsu commented, "Numbers are not important, but quality and customer satisfaction is important. Still, we are confident to achieve the number one position in India by 2020." Out of the 1.34 crore two wheelers sold in the country during FY2012, HMSI sold 19,96,320 vehicles. The company's total global revenue from two wheeler segment was 1,348.8 billion Yen during this period.
On Dream Yuga, Muramatsu said, "This is the cheapest bike that Honda has in its entire portfolio. This is the first 110cc bike in India, targeted to the masses. We want to focus more on the rural front with this new product." He further added, CB Twister, the company's first 110cc bike, was designed with sportier looks and was priced at Rs. 45,140-51,175 for city riders.
CD Dawn, CD Deluxe, Splendor+, Splendor NXG and Passion Pro, the top offerings from rival in this segment by Hero MotoCorp, fall in the range of Rs. 36,300-45,050. Bajaj marks its presence in the race with Platina, which is priced at Rs. 38,493.
Commenting on the company's targets, Yadvinder Singh Guleria, Vice President and Operating Head – Sales and Marketing, said that it is looking forward to selling 3 lac Yuga motorcycles in FY2013. He stated that the company is planning to increase its sales and service base to 2000 dealers from present 1500 units by the end of 2012 itself. Guleria also said, "We want to increase Honda's share in Indian two-wheeler market and the 100cc-110cc segment contribute more than 50 per cent of this. So, you may expect some new products in the future (in this segment)."
Reacting to a query regarding company's intention to take Hero MotoCorp head on in rural areas by producing more mass segment bikes, Muramatsu replied, "There is a scope of launching more affordable and low-cost bikes in India. We may develop bikes for a segment lower than Dream Yuga." However, he refused to comment if a cheaper bike is under development at present.
Asked about the company's exports, he expressed that the company wants to increase the figure to 1.5 lac units during FY2013 from 1.11 lac vehicles shipped in previous fiscal. In FY2012, HMSI sold a total of 21.07 lac two wheelers, including the exports, and is targeting 27.5 lac units in this financial year. Currently, the automotive giant has two manufacturing plants located at Manesar, Haryana and Tapukara, Rajasthan. Another unit is under development in Karnataka, which will raise the cumulative production capacity of Honda India to 40 lac vehicles by the first half of 2013.
