Honda rolls out Eterno; plans geared scooter, motorcycle

Mumbai: Honda Motorcycles and Scooters India (HMSI), the wholly owned subsidiary of Honda Motor Company of Japan, has announced the launch of the Eterno, a new scooter model.

HMSI officials say the company is also planning to launch a 150cc four-stroke geared scooter by May 2003 and will launch a motorcycle by next year.

The company is hoping to double the sales of its scooters to over 3.50 lakh units this year, riding on the success of its high-selling gearless scooter models (Honda Activa and Dio), which achieved a sales growth of 300 per cent last year selling 1.55 lakh units. While the Activa and the Dio are targeted at the premium end of the market, the Eterno will be aimed at middle-income families.

The company has set a target of selling 1 lakh Eternos in the first year to capture 35 per cent of the scooter market, which has been declining gradually as the market for motorcycles and gearless scooters is increasing.

Last year the market for geared scooters comprised 4 lakh units per annum from 12 lakh in 1997-98. HMSI president and CEO Haruo Takiguchi says Honda plans to make a cumulative investment of Rs 300 crore in India to expand its annual production capacity to 7.5 lakh two-wheelers by March 2006.

Plans are that when HMSI launches its motorcycle, Honda's joint venture company with Hero Motors, Hero Honda, will start manufacturing scooters. Through these two companies, Honda plans to capture a 50-per cent share of India's two-wheeler market by 2005.