The Hindu Business Line : HMSI aims to sell 1-m 2-wheelers this fiscal

Chennai, Aug. 4 Honda Motorcycle & Scooter India Private Ltd (HMSI), the 100 per cent subsidiary of Hondo Motor Company of Japan, hopes to sell more than a million two-wheelers during the current fiscal. Last year it sold 9,07,000 units – 27 per cent more than in the previous year.

At the launch of the 125-cc CBF Stunner, the Senior Manager of HMSI, Mr Y.S. Guleria, said the two-wheeler industry witnessed a 7.92 per cent drop in sales last year but HMSI bucked the trend primarily due to a mix of new and existing models in scooters and bikes. Shine, the 125-cc motorcycle launched in April 2006, contributed to last year’s growth along with Activa, Dio, Eterno, Unicorn and Aviator.

When the company launched Activa in 2001, the share of motorcycles in total two-wheelers was over 35 per cent, and it has now grown to over 80 per cent. The motorcycle segment grew by 65 per cent last year, while scooters grew by 15 per cent. This made HMSI launch more bikes than scooters. By 2010, the company would launch a 100-cc motorcycle that would equal the number of bikes and scooters in HMSI’s portfolio. At present over 70 per cent of its products is scooters and the rest motorcycles.

As the 125-cc is a growing segment in motorcycles, the company has fielded CBF Stunner despite Shine being in the same category. However, the company does not see any cannibalisation between Shine and Stunner as the price differential is more than Rs 4,000 and positioning of the product is also different. Shine is clocking about 18,000 units a month in sales and its market share has grown to 13 per cent this year from 18 per cent last year.

CBF Stunner comes with a 11 bhp engine coupled with 5-speed gear box, integrated front body cowl, split seats and tubeless tyres. The ex-showroom price in Chennai ranges from Rs 48,939 to Rs 53,554.

The company would complete the all India launch of the new bike next week, and hopes to sell about 80,000 units during this year. This would substantially contribute to achieving the company’s target., Mr Guleria said.