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Hero Splendor is Super at 125 cc

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The below article came to me thru email, sent by Amit Gupta of Foton Motors.

As you can see at end of paragraph 4 in the below article, the reporter mentions 4 members of the Splendor family==Splendor+, Splendor NXG, Splendor Pro and Super Splendor, because these are the models carrying the Splendor name tag on Hero website.

But the reporter is un-aware that of the four “Splendors” that he has mentioned, the first three==Splendor+, Splendor NXG & Splendor Pro have same 97.2 cc engine while the Super Splendor has a 125 cc engine and is a totally different creature, much bigger and more powerful than the other three also named Splendor.

The fact that this Economic Times reporter does not know these technical facts is OK. He is just a reporter, not a technical expert nor a bike enthusiast.

Honda set to launch 100cc bike against Hero MotoCorp's Splendor

Ketan Thakkar
The Economic Times

Mumbai: Readying its biggest assault to attain market leadership in India, Honda Motorcycle & Scooters India is set to launch a bike against Splendor, the flagship motorcycle of its former partner Hero MotoCorpBSE -2.42 % in the mass-market 100cc category.

ET learns that Honda Motorcycle & Scooters India (HMSI), the two-wheeler arm of the Japanese auto giant, will launch another 100cc motorcycle in the next couple of months to build its Dream series of mass market bikes. People close to the development say the new bike is code named 'K23', and is based on the same platform as Dream Yuga.

"The new 100cc offering is the value-engineered version of the existing 100cc bike and will be priced aggressively so it can be positioned straight at the Splendor segment. Yet again, the company is striving for higher fuel economy as the USP," says the person involved with the development, who did not want to be named.

HMSI is planning to sell 6 lakh units of this new 100cc bike in FY14, which will be just 25% of the Hero Splendor family's annual sales of 2.1-2.2 million units. The Hero Splendor family includes Splendor+, Splendor Pro, Splendor NXG and Super Splendor.

Between both its Dream series models, Yuga and the yetto-be-launched bike in the next fiscal, HMSI plans to sell a total of 1.2 million units, the person revealed. This means, the 100cc mass market will make up for almost 30% of the company's overall sales in FY14. Honda Motorcycle has already announced it is eyeing sales of 3.93 million units in FY14 and that it would be launching one new product every quarter.

VG Ramakrishnan, MD, Frost & Sullivan (South Asia), says, "Splendor has been one of the most successful models in the Indian two-wheeler space for decades. But that also shows it has been around for decades and needs revamping." "Honda is in an aggressive mode, whereas Hero is the one defending. History has shown that the one on the defensive starts losing. So, Hero is bound to lose market share to Honda. The answer lies in flanking the Splendor family with an additional model that is not only aggressively priced but offers value on par with Honda, if not better," adds Ramakrishnan.

While declining to give specific comments on the project, Yadvinder Singh Guleria, VP (sales & marketing) at HMSI, says: "The 100-110cc motorcycle market is a very large market and with our existing product portfolio we have a limited representation there. We have said this before, we would be expanding the Dream series going ahead and we will be launching new products there. We can't comment more than this at present." Dream Yuga is available for Rs 44,000-48,000 while Splendor sells for Rs 40,000-45,000. The new bike from Honda is expected to compete around this lower price range, says the person.

If HMSI achieves its sales target, it will take away a significant market share from Hero. In FY13, HMSI's market share has shot up almost 400 basis points to 18.64% compared with 14.85% at the end of FY12. Market leader Hero saw its share falling to 43.01% in April-February of FY13, from 45.17% in FY12.

Perhaps, the new motorcycle under wraps is giving Honda the confidence to talk about leadership in the two-wheeler market sooner than targeted. According to data from the Society of Indian Automobile Manufacturers, Hero's total sales stood at 54.61 lakh units between April 2012 and February 2013, while HMSI sold 23.67 lakh units for the same period. Bajaj Auto's sales stood at 22.82 lakh units.
“Copyright © 2013, Bennett, Coleman & Co. Ltd. All Rights Reserved"
http://economictimes.indiatimes.com/news/news/by/industry/auto/two/wheelers/Honda-set-to-launch-100cc-bike-against-Hero-MotoCorps-Splendor/articleshow/19204688.cms

 

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