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.
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.
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.
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.