Honda Motorcycles India changing strategy to gain larger share in two-wheeler market
Currently occupying the second position in the Indian two-wheeler market behind former partner Hero MotoCorp, Honda Motorcycle & Scooter India (HMSI) is looking to take the number one spot by making a few changes in its Indian strategies. Honda has been doing well following unparalleled success in the scooter market with the Activa, while Hero is ruling the motorcycle segment with the Splendor range. In terms of overall sales in the Indian two-wheeler market, Hero is the clear leader. HMSI follows Hero will an overall market share of 27 percent.
Honda Two Wheelers have been doing well in the scooter market thanks to the Activa. The company has a share of 57 percent in the scooter segment. However, this figure drops to just 15 percent when it comes down to motorcycle sales. Thus, Honda is looking to gain a larger share in the motorcycle business and does not want to focus on just scooters. Hence, Honda’s strategy is going to be adjusted to take care of all the segments.
According to the company’s Indian chief executive, Honda will be changing its strategy every year as the market keeps on changing every year. With new products like the CB Hornet 160R, the Japanese company is looking to increase sales by aiming towards the semi-youth and urban customers with fun to ride and sporty motorcycles. Presently, the CB Hornet 160R is the only motorcycle from Honda to be compliant to BSIV emission norms. But the company will be updating all of its 14 models to meet the same emission standard before 31st March 2017.
With a current annual capacity of 4.6 million units, Honda’s production will increase to 5.3 million units by the 2016-17 fiscal year. This indicates an expansion of 15 percent at a time when the market is only growing only by 3 to 5 percent in the same period.
Source – Economictimes