Hero Honda to focus on 100-cc segment

With an eye on volumes to arrest erosion in crucial market share, Hero Honda has decided to strengthen presence in the 100-cc segment where it will launch new bikes.

Hero Honda is the market leader in the two wheeler market in India. It is the highest seller of bike in the world. But it is loosing its market share to Bajaj Auto. The two-wheeler market has become duopoly. Majority of the market is covered by these two companies.

Hero Honda is known for its quality bikes with good mileage. Bajaj Auto which was earlier manufacturing only scooters and was market leader in that segment has shifted itself from that segment to two-wheeler auto. Pulsar becomes its key product which helped it to grab the market in the segment where Hero Honda has no presence.

Bajaj is competing with very low profit and selling its bike at a very competitive price. It is trying to take away the sells of Hero Honda completely with the price advantage. Hero Honda has decided to face the challenge by Bajaj Auto by launching new bikes in the 100-cc segment which is the entry level. It will launch these bikes at competitive price.

But in a recent interview in Fortune Asia Rajiv Bajaj said that they are looking at the future market of India as 125-cc bike. When Bajaj is looking at the future of the two wheeler market Hero Honda is going back to the entry level. It is known to everyone that Indian consumers are price conscious. So only time will say that who wins the present or the future of this segment.