Hero MotoCorp?s stronghold in the 100-110cc mass bike segment is under attack from all sides with ex-partner Honda, Bajaj and Mahindra planning at least four new models between themselves for the extremely lucrative market space.
The focus on the belly of the bike market comes after a lull in activity but analysts feel it was only a matter of time till when the bike wars finally entered the space. With about 65% of the 6.7 million bikes sold between April and November 2012-13 coming from 75-110 cc segment, a strong presence is extremely important for any player with an ambition to be the top two-wheeler maker in India. Honda has such a stated target by 2020.
These new entrants will challenge market leader Hero?s four contenders, the top-seller Splendor, Passion, CD Dawn and CD Deluxe, which together give it a 69% share of the mass segment.
Honda Motorcycle and Scooter India (HMSI) reportedly plans to expand its ?Dream? range with its first 100 cc bike model this year, which will also be the cheapest bike in its range. The new model will join its 110 cc mass segment range of CB Twister and Dream Yuga (launched in June 2012).
?Currently, we?re not fully represented in terms of our product portfolio. We have to have more models in the 100-110cc segment, which along with new scooters, you will see at least one new launch every quarter this year. Our Dream range will be further expanded,?
Yadvinder S Guleria, vice-president (sales and marketing), HMSI said. He added that the focus will be to increase rural retail sales with new dealerships.
Meanwhile, Pune-based Bajaj Auto has expanded its Discover range with a 100 cc Tourer model, a mass segment model with a twist. In a bid to differentiate itself from the competition and position itself a bit more premium and sporty, Bajaj has packed the product with more features and power (10.2 Ps versus the average 7.5 Ps power in the category). This will join its existing model, the 100 cc Bajaj Platina.
K Srinivas, president (motorcycle business), Bajaj Auto, said that the 100 cc motorcycle has got further segmented with distinct trends emerging. Pure entry-level motorcycling is coming down as customers are steadily moving up within the 100 cc range and to higher segments in the search for more features.
Meanwhile, Mahindra two-wheelers has also made a comeback into the bike market by unveiling the 110 cc Centuro and Pantero models this week. Both bikes promise a lot of new features (such as central-locking) to entice the value-segment customer and will be launched in the next few weeks.
Abdul Majeed, auto practice leader at PricewaterhouseCoopers (PwC), said, ?The sentiments in the two-wheeler market remain under pressure citing the overall economic condition in the country. We expect the first half of this year to be a challenge and industry ending the next fiscal at around 6-8% growth.? He added that exports to markets like Africa is expected to remain an incentive for the Indian makers.
The popularity of the entry bike segment is primarily driven by the low prices, low maintenance and high fuel efficiency of such bikes.
Though the 75-110 cc mass segment accounts for a lion?s share of the bike market, sales have dipped 2% between April and November FY13 to 4.37 million units, both because of a lack of new model launches and customers moving up to more premium models. In fact, the share of entry-level motorcycles has come down from 73% six years ago to about 65% today.