In a bid to challenge erstwhile partner Hero MotoCorp in rural markets, Honda Motorcycle & Scooter India (HMSI) on Friday announced the launch of its new entry bike, the CD 110 Dream, starting at an aggressive price of Rs 41,100 (ex showroom, Delhi).
The third product in its Dream series, after the Neo and Yuga, the CD 110 Dream will compete in the mass motorcycle segment where Hero is the market leader with products like the 100cc HF Dawn (Rs 37,900) and HF Deluxe (Rs 40,250) models. Hero’s cheapest 110cc bike, the Passion XPro is priced at R47,400. The CD 110 promises a fuel economy of 74 kmpl.
Yadvinder S Guleria, VP for sales & marketing at HMSI, said, “We are now fulfilling the utilitarian needs of ‘rurban’ customers with CD 110 Dream. We are confident that at its most affordable price of Rs 41,100, the new CD 110 Dream will ride Honda into the hinterland and multiply the success of the existing Dream series motorcycles.”
With the last remaining ties with Hero — a technology partnership — also coming to an end last month, HMSI will also start a massive 360-degree ‘Honda is Honda’ brand campaign in July that will underline the brand’s expertise in two-wheelers.
Keita Muramatsu, president & CEO, HMSI, said, “Honda is Honda is more than just a campaign, it is the start of new era in India. Honda aims to be an integral part of every tw0-wheeler customer’s emotional landscape as it fulfils the mobility dreams of India.”
With volumes split almost evenly between scooters and bikes, HMSI currently commands a 25% share of the country’s two-wheeler market, with volumes rising 35% to 37.2 lakh units in FY14.
Last year, HMSI started its third plant in Bangalore, and a fourth is now expected in Gujarat. The two-wheeler market grew 4% in Fy14 to 104 lakh units, and is expected to accelerate further with around 10% growth this fiscal as consumer sentiment improves on the back of the new government’s push towards economic growth.