Honda launches scooter

By Our Special Correspondent

BANGALORE, JUNE 18. Not unnerved by the decline in the scooter market in India, Honda Motorcycle and Scooter India (HMSI) today made an entry into this segment with the launch of ``Honda Activa'', a mid-sized scooter. Activa is a 102cc engine with automatic transmission.

At the launch of the vehicle in the country, the HMSI President and Chief Executive Officer, Mr. Haruo Takiguchi, said the scooter had been designed and developed with the Indian market in mind. The decline of the scooter market in the country, he attributed, to lack of innovation and understanding consumer needs. HMSI had conducted extensive consumer survey and had entered the market.

The plant at Manesar near Delhi had a capacity of one lakh vehicles annually and in the first year itself, he hoped, HMSI would be able to get 40,000 scooters on the road. The mid-size scooter segment, he said, was a fast growing one with about 10 per cent growth annually. Honda Activa would be placed at the premium-end of the mid-size segment and was priced at Rs. 38,684 (on road price) in Bangalore, Rs. 39,052 in Mumbai, Rs. 36,326 in Chennai and Rs. 35,628 in Delhi.

Mr. Takiguchi said HMSI which was a 100 per cent subsidiary of Honda Motor company, Japan, would strengthen its product line-up based on customer feedback and research. It had plans of introducing one model every year. HMSI had a capital of Rs. 200 crores and it would not be diluting its equity.

Asked about its tie-up with Hero Honda, Mr. Kojiro Iguchi, Director, Sales and Marketing, said there was an agreement between Honda Motor Company and Hero Honda, wherein the former would not be entering the motorcycle segment till 2004. HMSI will be concentrating on the scooter market and after 2004 it will work out its strategy.

The company has chalked out its plans of countrywide launch, starting with July 1 (South zone); July 21 (West zone) and August 17 (North and East). It has identified 43 towns (54 dealer outlets have been established) where it sees 75 per cent of the demand coming from.

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Section  : Business
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