The Hindu Business Line : Hero Honda to foray into scooter segment

EVEN as a decision on the company's proposed third manufacturing plant is expected to be taken "very soon," Hero Honda Motors Ltd has decided to launch a scooter model and one more motorcycle model in the current financial year.

The company, which has two manufacturing facilities in Gurgaon and Dharuhera in Haryana, had already launched the Super Splendour and Glamour motorcycle models earlier this year.

Mr Atul Sobti, Executive Director (Business Operations), Hero Honda Motors Ltd, was speaking at a news conference held here on Wednesday to mark the launch of `Glamour' in eastern India. He said the proposed scooter model would be priced below Rs 40,000 and would provide a "value proposition for the customer." The foray into the scooter business would give Hero Honda Motors a presence in a market segment that accounts for volume sales of around one million units a year.

Mr Sobti said the domestic two-wheeler market had been pegged at 6.5 million units last year with the industry clocking a compounded average growth rate of 12 per cent in the last five years. Motorcycles account for 80 per cent of the total two-wheeler sales in the country, even as 54 per cent of the total number of motorcycles sold in the country belong to the deluxe segment. Hero Honda currently has a 50 per cent share of the domestic motorcycle market.

Positioned in the premium deluxe segment, the 125-cc Glamour is fitted with a new `quantum core' engine and is expected to help the company further consolidate its leadership position in the premier deluxe motorcycle segment. The four variants of Glamour are available in 10 colours and have been priced between Rs 44,500 and Rs 48,560 (ex-showroom, Kolkata), according to Mr Sobti.

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