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Targeting to gain market share in the entry-level motorcycle segment in North and Central India, Honda Motorcycle and Scooter India (HMSI) launched its Shine 100 cc motorcycle in Mumbai.
The 100 cc motorcycle will be available for ₹64,900 (ex-showroom).
“The 100-cc market has grown by 5 per cent, and in the West and South markets, we are number one. We had challenges in the North and Central markets, but with the product launch in the segment, we are expecting that to get better. We started from scratch, and we took the price positions into consideration. Our product is cheaper and more aggressive,” said Yogesh Mathur, operating officer, Sales & Marketing, at Honda Motorcycle & Scooter India.
The production of the motorcycles will begin in April, and the deliveries will begin in May. The company has set a sales target of 3,00,000 units of Shine 100 in the first year.
Rural demand and new production lines
Anticipating a good monsoon leading to a rise in rural demand, the company is expecting the mass market segment to grow further.
“The product portfolio makes us confident. Entry-level customers will be looking at options to choose from. People were looking to buy Shine products, but owing to price challenges, customers were not buying 125cc,” said Yogesh.
The company plans to have an additional assembly line in its Gujarat plant for the production of scooters with ICE engines.
“We have 5.8 million in production capacity among 4 factories, and additionally, we established a new line and increased it to 6.4 million. The next financial year with exports, we will have full capacity,” said Atsushi Ogata, Managing Director, President & CEO, of Honda Motorcycle & Scooter India.
Export and vehicle price hike
As the export of two-wheelers has gone down the company stated that few markets are getting better
“Next financial year we plan to have 4,00,000 exports, and according to the demand from the global market, it can reach 6,00,000. Some markets are seeing headwinds, including Bangladesh and Nepal, but the major contributing market, Mexico, and Latin America are going up,” said Atsushi Ogata.
HMSI stated that they would evaluate conditions before taking a price hike: “There will be no immediate price hike, but it depends on factors, including raw materials. If force is negative, then we will have to take a price hike,” added Yogesh.
Further, the company that will launch its electric vehicle product is exploring partnerships with OEMs for electric vehicle production in the country.
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