Honda Motor stake on 100-cc bikes for rural India
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Japan’s biggie Honda Motor, world’s largest motorcycle maker, is gambling on the small capacity 100- cc economy bikes as it boards upon rural push in the second- largest two-wheeler market of the world. The Japanese firm which is separated from its long-term Indian partner turned rival Hero MotoCorp, has appointed 5 management teams all over India led by Japanese officials. It is being done to create a new decentralized marketing strategy to maintain consistency in sales, industry experts said.
This Tokyo based two-wheeler firm is currently working on a new version of the CD platform in the 100- cc segment. In this segment, Hero Motor’s CD Dawn and CD deluxe have the highest sales so far. This new technology of 100-cc is targeted at India’s huge rural strata. It covers about half of the volumes to the 5 million bikes that Hero sells every year. Targeting rural market is not a new strategy for Honda as most of its product has sales from cities and big towns.
Abdul Majeed, auto practice leader, PWC said, “The Company is currently focusing and tweaking bikes relevant for the Indian market to get closer to the customer.” This new technology of 100-cc bikes has laid foundation for Hero MotoCorp, previously Hero Honda used to be the world’s largest two-wheeler firms in case of volumes. Previous year, Honda sold its 26% stake in Hero Honda to India’s Munjal family whereas the agreement between Hero and Honda regarding technology permits the former to use the joint name for the products till the time of 2014.
Honda, who is the owner of the CD brand jointly with Hero worldwide is about to bring a new and fresh design of engine with improved technology to attract rural youth of India and others. Hero’s claim for CD brand will be till the year of 2014. Till then, Honda plans to emerge as a big and important two-wheeler brand in Indian scenario. The company said that it aims high with respect to Indian circuit in the upcoming years as soon as they are ready with their strategies to consolidate.
By editor in Auto Articles, Auto Events, Auto Expo 2010, Auto Finance, Auto India News, Auto Industry News, Auto Insurance, Auto Pricing, Auto Safety, Auto Schemes, Honda, hero honda
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