Honda's Royal Enfield competitor plans put on hold - Report

24/04/2017 - 16:05 | ,   | Neelanjan Chakraborty

Royal Enfield is the fastest growing brand in the 250 cc + segment.

Barely weeks after the Honda Asia CEO, Mr Noriaki Abe revealed Honda’s plans for a new mid-sized motorcycle in India, HMSI’s Mr Minoru Kato’s statement to LiveMint makes it believe that the project is on hold.

Honda Rebel 500 grey rear at Thai Motor Expo
The Honda Rebel 250 is the company's latest cruiser model released in South East Asia.

Mr Kato, the president and CEO of HMSI, talked about his apprehensions in developing a higher capacity motorcycle in the country. He said:

So far, from my point of view, the cost competitiveness as of today is not enough to compete in that segment.

The report also indicated that while Honda India is highly proficient in making entry level products up to 125 cc but has limited exposure in the 250 cc plus territory. Even if we talk about Mr Abe’s statement, developing a new bike will take time, especially since the motorcycle will not just be India-centric, but will also be sold in the ASEAN region.

Also Read: Honda CBR150R & Honda CBR250R sales paused, BSIV versions coming soon

The motorcycle market in the ASEAN region is somewhat similar to the Indian market and with the upcoming BSVI norms in 2020, the motorcycle can be supplied to a plethora of markets.

Royal Enfield Classic 350 Redditch series Redditch Blue front three quarters left side at 2017 Surat International Auto Expo
Royal Enfield's Siddhartha Lal had said in a recent interview that competitors like Bajaj does not worry him.

Honda India aims to sell more than 6 million units in the present fiscal with scooters being their prime products and last week revealed that they will be introducing 4 new products to get there.

[Source: LiveMint]

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