Honda Motorcycle & Scooter India (HMSI) on Thursday announced the launch of 110 cc CB Twister motorcycle, priced at about Rs42,000 (ex-showroom Delhi). The bike will be in showrooms by end of February 2010.
HMSI's entry into the 100-110 cc bike space assumes significance for several reasons. To begin with, this segment accounts for half of the total bike market in India, accounting for 40 lakh motorcycles annually and is already crowded. HMSI’s sister company Hero Honda Motors itself commands the largest market share here, straddling price points between Rs35,000 andRs45,000 so that the former's entry would raise issues of cannibalisation and some overlap with sales of CD Dawn, Splendor and Passion Plus.
Also, HMSI's entry comes at a time when competition such as Bajaj Auto has begun talking of “upgrading” the consumer from a “cc-led” marketing pitch to performance and style.
Shinji Aoyama, president & CEO of HMSI, says his company has set itself a modest target of selling 2.2 lakh units of the CB Twister next fiscal.
“We are looking to create a new segment so sales target is not very high…this bike has limitations such as comfortable ride for only two people, not three or four.”
He also admitted that HMSI’s distribution strength was not enough — “We have just 700 outlets against Hero Honda’s 3,000-4,000” — to target higher sales in the first full year.
Aoyama denied any joint component sourcing, marketing or distribution with Hero Honda but said that the engine could share some similarities with Hero Honda products because of common Honda R&D.
Aoyama said that the two Honda companies in India have already increased their joint market share in two-wheelers from 50% to 65% and the launch of 110 cc bike from HMSI is only expected to strengthen this position.
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