Two-wheeler major Honda Motorcycle and Scooter India (HMSI) aims to expand its bike portfolio in the country as it looks to bring in new set of customers from both rural and urban areas to its fold. The company aims to bring in entry-level affordable products for rural areas while strengthening its mid-segment range (above 150cc) as well as super bike portfolio to cater to different set of customers.
The Japanese company, which dominates scooter segment in the country with products like Activa and Dio, is now looking to expand its footprint in rural areas with a new motorcycle which would sit below its CD 110 range, the company”s most affordable bike at the moment.
The company’s focus on filling the gaps in its portfolio to acquire more customers stems from the underlying fact that with the implementation of BS-VI emission norms, profitability on each model has come down, leading to its review of each model line. The review would not impact the current models, but will look at filling the gaps in the portfolio to acquire all kinds of new customers. It currently lacks entry level motorcycle which could compete with the competitors. Unfortunately, it does not have a strong product for rural areas.
The company plans to strengthen its mid-range portfolio (above 150cc) going ahead. In India, there are high income groups as well, and Honda has the technology to bring in new products in this category as well. It will also focus on localisation and India centric products. Currently, motorcycle sales account for just around 35% of the company’s total sales in a year. Scooter range, on the other hand, accounts for the rest 65% of the sales. HMSI currently sells eight bike models, including two superbikes, in the country.Â
HMSI has four plants located at Manesar (Haryana), Tapukara (Rajasthan), Narsapura (Karnataka) and Vithalapur (Gujarat), with total installed production capacity of 64 lakh units per annum.