The motorcycle segment in India is majorly dominated by Hero Motor Corp, but the things have changed since its alliance Honda has taken away its stake from Hero and has started its own production. Honda Motorcycles and Scooters India (HMSI) is now gearing up to give a more tough fight to Hero in the segment which it has dominated since past decade, yes we are talking of the Rs. 30,000-Rs. 40,000 (US $600 to $750)price segment which gives Hero a majority of market share in both rural and urban India. Hero offers its cheapest bike CD Dawn at a price of Rs. 36,600, Ex-Showroom, New Delhi whereas HMSI’s cheapest motorcycle Dream Yuga is offered at a price of Rs. 44,657, Ex-Showroom, New Delhi.
The price gap of nearly 10,000 is a lot in motorcycle segment in India and to fill this gap Honda is now all set to debut its model in this segment. Atsushi Amataka, president, Honda Research & Development India, commented “We are examining the possibility of introducing a low-cost motorcycle for India.” This new low cost motorcycle will be developed indigenously in the company’s R&D facility in Manesar. The Dream Yuga is living up to company’s expectation, which both the Indian Bike giants Hero MotoCorp and Bajaj witnessed with loss in their market stake in the 2012-13 Financial Year.
Hero Moto Corp offers 7 products in the price range of Rs. 36,000- Rs. 51,000 in which it offer some popular models like CD Dawn and Splendor which gives it a number one position in terms of sales and market stake close to 70 percent. But the game will become stiffer for Indian manufacturer after the introduction of this low cost motorcycle by Japanese bike giant. It’s time for Hero and Bajaj both to wear a thinking hat that how will they combat HMSI’s ambitious plans in Indian bike segment, current HMSI is market leader in scooter segment with its top selling model Activa. One thing is sure whatever way the market swings for manufacturer the prospect motorcycle buyers will have one more option to look for. However the HMSI hasn’t disclosed any specific timeline for the launch of this low cost motorcycle.