Hero Honda Unveils 223-cc Karizma

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New Delhi, May 15:: Hero Honda Motors Ltd has launched 223-cc motorcycle ‘Karizma’ (pronounced karitzma), priced at Rs 79,000 (ex-showroom, New Delhi). Initially, the premium sports bike will be rolled out in top 175 dealerships (out of its network of 450 dealerships) in 100 towns.

Company managing director Pawan Munjal hoped to sell around 20,000 units of Karizma in 2003-04. ‘‘Between Karizma and CBZ, we would sell over 45,000 units this fiscal. Margins are certainly better than what we can get in entry-level bikes.’’

Mr Munjal said that the company was currently working on the next generation of engines, which would drive a wide range of products in the future, including a new batch of bikes targeted at the volume segment in fiscal 2004-05.

Hero Honda’s capital expenditure for the fiscal 2003-04 is put at close to Rs 100 crore. This includes development of next generation of engines as well as new products. A month ago, the company rolled out entry-level CD-Dawn. The company has plans to rollout a couple of variants during September-October. Mr Munjal said that the company was waiting for the feasibility report which will be out in September 2003 to take a decision on whether to utilise the existing facilities for further capacity expansion or to set up a separate greenfield operation. ‘‘We’ve already stretched capacities up by around 25 per cent. We certainly need more capacity to grow,’’ Mr Munjal said.

Hero Honda is looking at double digit growth for volume sales, turnover, and PAT. Company vice-president (marketing) Atul Sobti said: ‘‘We are expecting double digit growth. A clearer picture will emerge only after the first quarter.’’