Hero Honda plans to keep it small
01 September 2008
New Delhi: India's leading motorcycle manufacturer has decided to ignore the perceptible shift in buyer preference for a larger engine on his bike, and thinks that the present and future trends would testify for the sub-125cc segment.
Despite the changing flavour if the Indian motorcycle market towards a larger engine and more powerful motorcycling experience, Hero Honda Motors has continued to strengthen its share of the entry level sub-125cc segment. What is even more noteworthy, is that while its competitors are changing their product offerings to suit the new demand for more powerful bikes, two thirds of the motorcycle market n India is still made up of the sub-125cc segment.
Rival Bajaj Auto on the other hand has decided to pursue the above 125cc segment, where it is already a leader, given the popularity of its Pulsar model among the Indian youth.
As the motorcycle market expands, the sub-125cc segment's share of the market would shrink over time, as the bulk of the market gravitates towards higher category bikes. However, Hero Honda still intends to retain its focus on the segment, while strengthening its presence in every segment of the market.
Speaking to the media on the sidelines of the CII marketing summit in New Delhi, Anil Dua, senior vice president for sales and marketing at Hero Honda said that high interest rates and tight financing have also taken their toll on the demand for motorcycles, which will case the industry to slow down to single digit growth during the fiscal.
That the sub-125cc segment is set to see some action can be gauged from the fact that Hero Honda claims a 70 per cent market share in the segment, and most motorcycle manufacturers in India are looking to increase their offerings in the entry level segment, with the exception of Bajaj. Bajaj, pursuing its strategy of above 125cc, has seen its share of the segment decline by 18 per cent in the April – July period, while its share of the above 125cc category grew 21 per cent.
