![]() Financial Daily from THE HINDU group of publications Sunday, Nov 13, 2005 |
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Investment World
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Two/Three Wheelers Columns - Auto Focus Hero Honda's new duo S. Muralidhar
HERO HONDA continues to be the undisputed leader in the two-wheeler market despite other manufacturers constantly trying to nibble at its share and collaboration issues with its Japanese partner. Not content with its traditional focus on motorcycles, Hero Honda is quietly foraying into the surging gearless scooter market, a move that will also prove that relations with its technical collaborator Honda of Japan continues to be cordial. After all, the company's new scooter `Pleasure' will be positioned bang in the middle of all the action, the segment where Honda Activa currently rules the roost. Hero Honda has, in a way, tackled and put to rest two issues or related conspiracy theories doing the rounds in the market. Both related to the new products following Honda's wholly-owned subsidiary Honda Motorcycle and Scooter India launching two scooters and a 150cc motorcycle. The issue really then was: Would Honda, despite renewing its technical collaboration with the Hero group (its Indian partner in the joint venture), share technology for new products in the same category?
The two new products that Hero Honda has announced will clear speculation on these issues. The company has unveiled its first scooter, Pleasure, and a long-awaited new 150cc motorcycle that will be offered alongside its existing workhorse, the CBZ star, in the premium executive segment of the bike market. The Hero Honda `Achiever', its new offering in the 150 cc segment, will feature a brand new engine which will hot up the battle for market share in that category. The new bike will also strengthen the company's product portfolio and could prove to be a tough competitor for Bajaj Pulsar the leader in the segment. Hero Honda revolutionised the Indian two-wheeler industry with the first four-stroke 100 cc motorcycle (CD-100) more than two decades ago, when four-stroke engines were not fancied owing to their inherently poor performance characteristics and because emission was not a big issue then. After the mid-November launch of Pleasure, Hero Honda could go through a image change similar to that of Bajaj , though in the reverse that is, from being a bike maker to a manufacturer of all types of two-wheelers. The size of the scooter segment in India is over a million units and the segment has been witnessing impressive growth the past few years. Hero Honda's new Pleasure will hope to ride the demand wave that is sweeping the gearless scooter segment. The company also claims that its new scooter will be one of the more fuel-efficient ones in the segment. The 100cc Pleasure is also expected to have distinctive features, including an ABS body, variomatic transmission and high pulling power. It will also come equipped with tuff-up tube and tyre combo a technology that offers immediate remedy in the event of a puncture, by releasing an anti-puncture sealant gel; Honda Activa was the first two-wheeler in the country to feature this unique technology. Self-start will be a standard feature in the scooter. Pleasure will attempt to offer customers contemporary style and practicality through multi-reflector headlight; body-coloured mirrors; multi-reflector indicators nestled in the front; new age oval-shaped instrument panel; aluminium cast rear grab rail; stylish muffler; modern tail-light cluster; broader seat for comfortable riding; light-weight body; sufficient under seat luggage space; and hook and glove box for extra utility. Hero Honda has not announced the price of the new Pleasure, but it is expected to be Rs 40,000-42,000 on-road. The Achiever will be the company's third new motorcycle to be launched this year. The bike promises to deliver a combination of high power of 10kw (13.4 bhp) in the 150cc segment ( Honda Unicorn's is 13.3 bhp), with a relatively high fuel efficiency, too. Some of the other features of the Achiever will include stylish visor and bikini-fairing; dual tone graphics on the petrol tank; multi-reflector headlight with halogen lamp and a position lamp; multi-reflector tail lights and winkers; uniquely designed muffler with heat shield and dual tone painted chain case; and tuff-up tube to add to the rider's convenience and confidence. Both Pleasure and Achiever will be available nationally through the company's existing network of dealers in a phased manner by end-November. In addition, Hero Honda has said that Pleasure will also be sold through outlets targeted exclusively at women customers at 24 locations covering 20 towns nationally. While the Pleasure will come in a range of eight attractive colours, including orange, grey silver, aqua green and light purple, the Achiever will be available in seven colours, including magnetic blue and spring violet. The Achiever is being made available in four variants drum/kick, drum/self, disc/kick and disc/self. There will also be two different versions, one with a round headlight and visor and the other with a trapezoidal headlight design. The motorcycle has been attractively positioned in the segment, starting at an introductory price of Rs 47,900 (ex-showroom Delhi).
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