Business Daily from THE HINDU group of publications
Wednesday, Dec 13, 2006
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Business Daily from THE HINDU group of publications Wednesday, Dec 13, 2006 ePaper |
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Outlook Marketing - Market Shares Honda to hike scooters output by 20 pc K. Giriprakash
Recent announcements by Bajaj and TVS to re-enter the scooter segment is being seen as an indication of the untapped opportunity still existing in the market.
MR MASAHIRO TAKEDAGAWA
Bangalore , Dec. 12 Honda Motorcycle & Scooter India is looking at increasing production of its scooters by 20 per cent and introducing new variants next year in an attempt to push up its scooter sales. "We are seized of the issue. We will increase the production by 20 per cent and launch new variants of our scooter range," Honda Motor Company's head for South West Asia, Mr Masahiro Takedagawa, told Business Line. He said the production of scooters had taken a hit because of the increase in production of motorcycles. "We will correct that situation now. We will increase the production of scooters," he said. Honda, which leads the scooter market in India, has three models — the 150cc geared scooter Eterno, the 102cc ungeared Activa and the motoscooter Dio. Mr Takedagawa, who is also the President and the Chief Executive Officer of Honda Siel Cars, said the company would also introduce variants of these models over a period of time starting next year. "We want to increase the offerings to bring in new customers," he said. The company has already announced its plans to reposition its motorcycle range, which includes, Shine and Unicorn. The growth in the scooter segment has slowed down considerably, but recent announcements by Bajaj and TVS to re-enter the segment is being seen as an indication of the untapped opportunity still existing in the market. "I am quite surprised that Indian customers haven't taken to scooters in a big way. In Europe, we have huge range of scooters which are doing extremely well," Mr Takedagawa said. Honda's Activa and Dio sell over 35,000 units every month, while TVS with its 90cc gearless Scooty sells the next best with sales of over 25,000 units. A TVS official recently said that the company plans to launch 100cc+plus gearless scooters, as the potential for such scooters was huge. The scooter segment forms between 10 per cent and 12 per cent of the total two-wheeler market. Scooters' sales in November 2006 were, however, higher compared with the rest of the year because of the festive season and discounts. According to market data, Honda commands a 49 per cent marker share in the scooter segment followed by TVS, which has 32 per cent, while Hero Honda has 11.5 per cent and Kinetic Motor has around 7 per cent share.
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