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Three decades back when Honda built a mass two-wheeler brand known for reliability in the semi-urban and rural markets, it had with ex-partner and current market leader Hero by its side.
Today, as it again embarks on a solo journey with a new company – Honda Motorcycles and Scooters India (HMSI), it is trying to avoid any connections with the past.
“We think we have a fairly good recall of the ‘wing brand' already. We don't have to piggyback on someone else's plans,” said a confident Mr Yadvinder S. Guleria, HMSI's Vice President for Sales & Marketing.
Though an old Honda hand, Mr Guleria had left for a short stint with ATV maker Polaris in 2011. He assumed his current position this April. “As a company operating since last 11 years, we will cross the one-crore customer base by July,” he added.
This is surprising, say industry insiders, given that leveraging a ready reputation is probably the easiest route for developing a new brand rapidly.
HMSI sharp focus on the mass biking segment began with the launch of the 110cc Dream Yuga last month. With expected sales of 3 lakh units in the first year, the bike's value proposition and low pricing is expected to give a strong boost to volumes.
“We expect many more models to come at a very fast pace this fiscal and have already launched the seven products we showcased this January at the Auto Expo,” he said.
The Dream Yuga will also help it shift away from its high reliance on the scooter market. The share of bike sales is expected to reach 50 per cent this year, from 30 per cent two years ago. Meanwhile, sales points are being increased to close to 2,000 from 1,500 this year.
Capacity expansion
Output is also being sharply increased. A new plant in Bangalore will increase annual capacity to 4 million by early 2013, from the current 2.8 million spread across the Manesar (Haryana) and Tapukara (Rajasthan) facilities. With a target of 10 million unit sales by 2020, two more new plants are also rumoured to be set up soon.
“We will have to look for more capacity. To shorten the development time of new models for the domestic market, our Honda Technical Center will start at Manesar this October,” Mr Guleria said.
HMSI, which is expected to take the number two spot in the two-wheeler market from Bajaj this year, hopes to grow sales 30 per cent to 2.75 million units this year.
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