For some the 100cc entry-level bikes are a complete no-no. But for others it continues to be a must present segment. No wonder, players like Honda Motorcycle & Scooter India Ltd (HMSI) and TVS Motor Company are evincing interest in the segment, despite the fact that it is worst hit when it comes to high interest rates or lack of adequate finance.
While, HMSI is mulling to come up with a 100cc bike in two years, TVS is planning to roll out a new entry-level bike called Star Sport this fiscal year. “No matter what may come, the 100cc bikes will continue selling in semi-urban and rural areas where people want value for money and not style and looks,” says NK Rattan, head (sales & marketing), HMSI, adding that the company needs to be present in the segment which adds to the overall numbers. The company currently sells 125cc Honda Shine and 150cc Honda Unicon in India.
While, this would be HMSI’s first product in this segment, for TVS it would mean an addition to its existing TVS Star that currently constitutes about 75% of the company’s total sales. “Entry-level bikes in the range of Rs 32,000-38,000 will continue to command a market share of 30% with a huge chunk of it being sold in B and C-class towns.
However, a 100cc bike priced over Rs 40,000 will become insignificant in two years time as players offer higher capacity bikes in that price range,” says R Chandramouli, senior vice president, TVS Motors. The company sells around 45,000 of TVS Star.
“There would always be people who aspire to drive a bike that gives maximum mileage at the minimum cost? says an auto analyst.