New entry

New Delhi, Nov. 15: Two-wheeler maker Honda Motorcycle & Scooter India Limited (HMSI) is planning to foray into the entry-level 100cc segment.

“We will showcase the 100cc bike at the Auto Expo 2010. It will be priced competitively but will not be cheap. The pricing will be on the higher side of the 100cc segment. It will be launched before the end of this fiscal,” N.K. Rattan, operating head (sales and marketing), HMSI told The Telegraph.

According to sources, the bike will be powered by a 110cc engine and will be priced at around Rs 45,000-47,000.

“We had been working on this motorcycle for three years as we were always sure that the 100cc segment would continue to dominate the industry,” Rattan said.

HMSI plans to export the bike to a few Asian and Latin American countries. At present, the 125cc CBZ Stunner and the 150cc Unicorn constitute the bulk of the exports.

The firm hopes to export about 70,000 units in this fiscal against 50,000 units a year ago.

HMSI enjoys a market share of 12 per cent and expects to grow 17 per cent in terms of sales this year. “The 100cc will be one of our key volume generating products. We really expect good numbers from it,” Rattan said.

According to latest reports, the annual sales of motorcycles in India are expected to cross 10 million by 2010, and 50 per cent of this should come from the 100cc segment.

Hero Honda, the leader in bikes, in which Honda has a stake, as well as Bajaj Auto Limited, the No. 2 player, are banking on the 100cc segment.

The launch of the 100cc Discover by Bajaj has helped the company to reclaim the second position in terms of domestic sales .

It has also enabled Bajaj to widen the gap with TVS Motors and inch closer to Hero Honda.

Bajaj lost its No. 2 position in the second half of 2008-09.