Honda will enter into the segment of two-wheeler space

Japan's auto major Honda recently reaffirmed its commitment to its existing JV with the Hero group (Hero Honda), but Honda India will also enter into nearly every segment of the two-wheeler space through its 100 percent subsidiary —Honda Motorcycle and Scooters India (HMSIL). HMSIL include motorcycles in the range of 100cc to 150cc as well as scooters to capture a sizeable marketshare. Hero Honda, in which Honda holds 26 per cent, is heavily in the motor-cycle segment. There’s been speculation regarding the supposed uneasiness between the partners when Honda Motor decided to enter the Indian two-wheeler market with HMSIL. Asian Honda Motor’s president and CEO Fumihiko Ike put all the rumours by saying that, "last week Honda was committed to its JV with India’s Hero Group." But speaking on HMSIL’s plans, Mr Yadvinder Singh Guleria, sales head, said, "We at HMSIL plan to launch a 100 cc bike next year and would like to have a complete portfolio of motorcycles for the mass market. Currently, we have a 125 cc and a 150 cc model." Mr Guleria on the possibility of cannibalisation said, "Although there will be some cannibalisation since HMSIL and Hero Honda will be selling products in the same category, this will ultimately benefit Honda since it will only increase Honda's market-share. Honda, through Hero Honda and HMSI, now commands 65 per cent of the two-wheeler market." HMSIL is also targeting an 18 per cent market share this year with a total sales of about 12.5 lakh units against 10.7 lakh in the previous fiscal. The company in 2010-11 will most probably invest another Rs 404.4 crore in its present plant at Manesar. Honda Unicorn, the bike with comfort and power and Honda Activa recently launched in India.