Honda Motorcycle & Scooter India (HMSI) today launched its most affordable bike in the country, priced at Rs 41,100 (ex-showroom Delhi) as it aims to strengthen its position in the mass segment and rural areas. The company, which is in the process of setting up its fourth manufacturing facility in Gujarat, is also looking to invest another Rs 1,000 crore on various activities including capacity expansion in the current fiscal.
"The launch of CD 110 Dream completes our portfolio in the 100-110 cc segment. The bike which is going to be the most affordable bike to be launched by Honda in India, will help us cater to the basic sub-segment of 100-110 cc vertical," HMSI Vice President (Sales & Marketing) Yadvinder S Guleria told reporters here.
The launch of the new motorcycle would help the company sell 8 lakh units in the 100-110 cc segment in the current fiscal as against 7.3 lakh units sold in last financial year, he added.
The basic sub segment, in which CD 110 Dream has been launched, currently contributes around 23 per cent to the overall 70 lakh units sold across the country annually in 100-110 cc segment.
"We are now fulfilling the utilitarian needs of 'rurban' customers with CD 110 Dream. We are confident that the bike will ride Honda into the hinterlands and multiply the success of existing Dream series motorcycles," Guleria said. The company currently sells Dream Yuga, Dream Neo and CB Twister models in the 100-110 cc segment.
When asked about the company's investment plans for the current fiscal, Guleria said: "We invested Rs 5,200 crore last fiscal. This year we plan to invest another Rs 1,000 crore, taking the overall investment to Rs 6,200 crore by FY15-end".
He added that the company would take its production capacity to 58 lakh units per annum by the end of next fiscal, when the Gujarat plant comes upstream.
The company currently has three production facilities at Manesar (Haryana), Tapukara (Rajasthan) and Narsapura (Karnataka) with annual capacity of 46 lakh units.
Besides, the company which has achieved 25 per cent market share in the Indian two-wheeler category in the first quarter of the current fiscal, also launched a new corporate campaign.
"Honda is Honda (campaign) is more than just a campaign, it is the start of new era in India," HMSI President and CEO Keita Muramatsu said.