By Swaraj Baggonkar
Honda Motorcycle and Scooter India (HMSI), the country’s second-largest two-wheeler manufacturer, has lined up multiple launches across product categories to boost its stranglehold on the domestic market, as availability of semiconductors continues to improve.
Among the new launches planned by the company is a budget-segment motorcycle. With this, the Japanese giant hopes to challenge the dominance of Hero MotoCorp, the leader in the domestic two-wheeler market.
New motorcycles in the 160cc and 300-350cc segments, and an all-new 125cc scooter, will be among the launches by Honda. These will happen over the course of the next one year, a top company official said in an interaction.
Atsushi Ogata, president, managing director and CEO, HMSI, said: “We are in the developmental stage with regards to the low-end motorcycle. We have to meet the new emission regulations for the next financial year. In the upper middle segment, we will have one in the 160cc segment. And we will also have a 125-scooter next year. Next year, we will also introduce a new model in the 300-350cc category.”
Also Read| Honda Activa 6G Premium Edition launched: Priced at Rs 75,400
The company is also working on its first electric two-wheeler which could be launched in the next 1-2 years. From a feasibility study stage, HMSI is moving to the developmental stage for its first EV.
India will be adopting OBD 2, an emission tracking regulatory requirement, from April 2023. Two-wheeler companies are rushing against time to meet the new norms as not only do new models have to qualify for it, even existing models will have to meet them. These norms are expected to push up buying costs by 5-6%.
As per data shared by the Society of Indian Automobile Manufacturers (Siam), Honda recorded a 27% share in the domestic two-wheeler market between April and July, while Hero’s share stood at 34%. The gap between the two players narrowed to just 2% in July.
Hero MotoCorp had a share of 34%, thanks to the overwhelming share of the below 110cc motorcycles which account for nearly 80% of its total domestic volumes. This is the segment which has a monthly volume of 350,000 units that Honda is targeting.
HMSI is also making strategic moves with regards to its manufacturing capacities. Its Manesar plant, also its oldest in India, will become the centre for premium bikes and mid-capacity bikes. With a peak capacity of 400,000 units, there are eight motorcycles assembled at Manesar currently, with 160cc engines and above.
HMSI is also among the two-wheeler brands adversely impacted by the shortage of semiconductors. But with the issue now easing and the reopening of schools and offices, demand for two-wheelers is gathering steam, Ogata said.
“Since the start of this year, thanks to schools reopening and offices restarting, we could see very positive momentum even from rural areas. We are keeping good momentum compared with the last three years. We have the festive demand coming up and the chip shortage issue is getting better,” he added.
