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In a bid to take market leadership, Honda Motorcycle and Scooter India (HMSI) has embarked on a new game plan, which it calls Wave 2.0.
At the centre of this plan is a more aggressive push in rural areas, increasing points of presence and launching affordable products.
The company in June has already surpassed home-grown companies Bajaj Auto and TVS Motor in terms of sales in the two-wheelers. While the company achieved sales of 3.23 lakh units (compared with 2.52 lakh units in June 2013), Bajaj and TVS sold 2.62 lakh units and 1.94 lakh units, respectively.
Honda enjoys the largest share of 52 per cent in the gearless scooters market and has 25 per cent share in the overall two-wheelers market in the country.
The company that sold 37 lakh two-wheelers last year expects to sell around 45 lakh units this year.
The new plants in the South and the West would further boost its market share. By the end of 2016, Honda will be producing at least 5.8 million motorcycles and scooters, compared with 4.6 million now.
“We will have plants in three locations — each in North (Manesar), South (Karnataka) and West (Gujarat) – to come up by end-2016 so that our strategy of ‘speedy delivery to customers’ are met,” Keita Muramatsu, President and Chief Executive Officer, HMSI, told BusinessLine on the sidelines of an event here.
He said the company’s main focus is to control the cost of production so that customers can get its products ‘affordable’ and, therefore, many of its vendors are moving towards Gujarat. “There are already some existing vendors around Gujarat, which will supply to us, apart from the vendors in Pune. The Karnataka and Gujarat plants will be very important for us because 50 per cent of the two-wheeler market is in these zones (South and West),” he said.
Honda Motor Company, Japan's association with India's Hero Moto Corp is over.
“There are still users who are not aware. We want to tell them that the Wings (logo) has become the ‘Only Honda in India’,” said Muramatsu.
The company will be running a campaign called ‘Honda is Honda’ that will be released digitally within the next fortnight and then to other media such as television, print, radio and outdoor.
“It is the start of the new era in India. Honda aims to be an integral part of every two-wheeler customer’s emotional landscape as it fulfils the mobility dreams of India,” he explained.
Around 200 engineers at its research and development centre in Manesar (which is one of the largest for Honda globally) are working on local innovations to drive down costs.
The company, on Friday, launched CD 110 Dream motorcycle priced at ₹41,100 (ex-showroom, Delhi) making it the most affordable mass motorcycle from its stable.
The new bike comes with Honda Eco Technology for a better mileage of 74 km a litre with its leading power output of 8.25 BHP at 7500 rpm and torque of 8.63Nm at 5500 rpm.
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