Honda, the Japanese two wheeler manufacturer and the world's largest motorcycle manufacturer is aiming to boost its market share in India by launching new 100cc motorcycles. This strategy is clearly focused at increasing Honda's sales in the rural market where 100cc motorcycles sell the most. After Honda walked out of its joint venture with Hero Honda, the Japanese firm did not have a motorcycle that sold well in the rural market.
The Hero Honda CD Deluxe and the Splendour are India's best selling 100cc motorcycles. Other models in the same segment are the TVS Star City, Bajaj Platina and the Discover.
Honda has now upped its plans to tap the rural motorcycle market. It has already appointed five management teams headed by Japanese executives who will create a decentralised marketing structure to push sales. Honda has always concentrated on the urban market and this is the first time it is looking closely at the rural market.
Reports say Honda is now working on a new model on the platform of the CD 100cc motorcycle. Hero Honda has become India's highest selling motorcycle manufacturer as more than half its sales are derived from the rural market. Honda owns the CD motorcycle brand name globally. It is expected to bring in a new improved engine along with better designs. While Hero can use the CD brand only till 2014, Honda can continue using it.
Honda is keen to tap this market as it believes it is not highly affected to global economic sentiments. The success in the rural bike market is dependent mostly on good monsoons. While Honda has not made an official statement regarding its new models for the rural markets, it has only stated that it wants to become a major player in the India two wheeler segment. It is an understood fact that to achieve this goal, Honda has to make an impact in the rural markets.