Honda mulls made-in-China motorcycles to take on market leader Hero MotoCorp!

Honda has one enduring ambition in every two wheeler market it operates in, of that of being numero one in that market. In India though, the numero uno by many a mile is Hero MotoCorp, which is also the world number one when it comes to the sheer volumes it sells in. After breaking away from a technical collaboration with Hero, one that lasted for over quarter a century, Honda is now training its guns on the number one position in the Indian market. Currently, the Japanese motorcycle and scooter giant is in the number three spot, behind two Indian companies. Hero MotoCorp and Bajaj Auto.

A China made replica of the Honda AKT125, a low cost 125cc motorcycle

A China made version of the Honda AKT125, a low cost 125cc motorcycle!

While Honda overtook TVS Motors a while ago to usurp the third position in the Indian two wheeler market, getting to the top will be quite tough as both Hero MotoCorp and Bajaj Auto are quite competitive with a slew of new launches being readied up for the coming years. If there is one segment that Honda is yet to taste real success in, it has been the high volume, bread and butter commuter motorcycle segment, a segment in which both Hero MotoCorp and Bajaj Auto are quite strong in. Cracking this segment Honda will be extremely crucial for Honda number one ambitions and the Japanese giant seems to have recognized that.

Honda Dream Yuga 110cc commuter motorcycle at the 2012 Auto Expo

At the 2012 Indian Auto Expo, Honda launched a 110cc executive commuter motorcycle called the Dream Yuga 110 to generate higher volumes. To deliver higher value than Hero MotoCorp and Bajaj Auto’s entry level commuter motorcycles do, Honda is said to be evaluating the option of launching Chinese made 125cc motorcycles, which Honda could sell at a price of around INR 30,000, a full four thousand cheaper than the next cheapest motorcycle, the Hero MotoCorp Dawn. Honda has been selling made-in-China motorcycles in he African markets and by offering more for less, plans to quickly shore up its market share.

Even as this latest development unfolds, questions on whether the Chinese made motorcycles will be reliable and adhere to Honda’s legendary quality levels are things that Honda will need to consider before making a foray into this segment. Also, the fuel economy that the 125cc China made Honda motorcycles offer will also be an important factor in determining whether Hero MotoCorp’s domination of the 100cc commuter motorcycle segment can be challenged. Honda, for now has big ambitions of achieving sales of 10 million motorcycles and scooters per year by 2020, which is more than triple its current yearly volumes. Only time will tell whether Honda manages to achieve this fantastic target.

Via TheEconomicTimes

Share and Enjoy:

January 12, 2012 | By Jay Prashanth · Tags: 2012 Honda Dream Yuga 110cc Commuter Motorcycle, Honda China made 125cc Low Cost Motorcycle

Comments

One Response to “Honda mulls made-in-China motorcycles to take on market leader Hero MotoCorp!”

Bharath Kumar on January 12th, 2012 6:10 pm

Chinese Bikes ? Yuckk…..
People in India buy honda products for its quality, this is like being unloyal to its customers.

If this happens, then who might know, the service center guys may cheat or damp the bikes with cheap and non-quality chinese spare parts instead of the good quality.

Honda – “I don’t enjoy the quality” :P

Leave a Reply