The Hindu Business Line : Hero Honda adds another Splendor

DELUXE MODEL: Mr Brijmohan Lall, Chairman, Hero Honda Motors, and Mr Pawan Munjal, Chief Executive Officer and Managing Director, HHML, at the launch of `Splendor NXG' in the Capital on Monday. — Ramesh Sharma

New Delhi May 28 In an attempt to increase the number of offerings under the Splendor brand, Hero Honda Motors Ltd on Monday launched `Splendor NXG,' a model in the deluxe segment.

Priced at Rs 40,990 and Rs 41,990 (ex-showroom Delhi), Splendor NXG would be available in two variants with spoke and cast wheels.

Built with a new engine, it can deliver peak power of 7.7 PS.

"We seek to leverage the existing Splendor brand by increasing our product offering to our customers. Both Splendor Plus and NXG would co-exist with the idea that it would address different customer requirements " said Mr Anil Dua, Vice-President (Sales and Marketing).

Last year, the company sold over 1.09 million units of Splendor.

With the launch of the new model, it expects the brand to gain further momentum.

Mr Dua also said that there was further scope for penetration in the 100-125 cc segment, with the deluxe segment comprising 51 per cent market against the premium bike segment, which accounts for 11 per cent.

Hero Honda, which launched eight models last year, is now looking to consolidate its position in these models.

However, the company would continue to come out with new offerings, especially in the entry segment, said Mr Dua.

Last year, the company took a marginal impact on margins on account of new launches and marketing costs.

On the company's plans to come out with products on new platforms, Mr Pawan Munjal, Managing Director, said: "We are looking to come out with new variants as they cost less in comparison to building a new platform."

While the company has managed to grow despite the industry recording a dip on account of high interest rates, it is now focusing on retaining market share rather than boosting volumes till interest rates stabilise.

"Our focus is on market share and not on volumes. We expect the growth to revive with stability in the interest rates scenario," said Mr Dua.

In January, sales grew by 19 per cent against the industry average of 11 per cent.

Despite the industry registering five per cent dip in February, the company grew at 12 per cent.

In March and April, when the industry recorded dips of two cent and five per cent respectively, the company grew by two per cent and five per cent respectively, Mr Dua added.

With the company's above average growth during the last six months, the gap between its closest competitor, Bajaj Auto, has widened.