Revfest, which will showcase HMSI's new models, will be rolled across eight cities simultaneously on August 4.
10 Jul 2015 | 9840 Views | By Shobha Mathur
In line with its planned rollout of 15 models in 2015 comprising both new platforms and refreshes of existing models, Honda Motorcycle & Scooter India (HMSI) today rolled out its ninth model – the 110cc Livo commuter bike.
Powered by a four-stroke, 110cc engine that develops 9bhp and employs ...
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In line with its planned rollout of 15 models in 2015 comprising both new platforms and refreshes of existing models, Honda Motorcycle & Scooter India (HMSI) today rolled out its ninth model – the 110cc Livo commuter bike.
Powered by a four-stroke, 110cc engine that develops 9bhp and employs Honda Eco Technology, the Livo will deliver a claimed mileage of 74kpl. The new Livo is available in two variants — a self-start equipped, drum brake and alloy wheel version (Rs 52,989), and with a disc brake (Rs 55,489), ex-showroom, Delhi).
HMSI is targeting annual sales of 200,000 units for the Livo, which will be produced at HMSI’s Narsapuram plant, near Bangalore. The target customer is aspirational first-time buyers, especially in semi-urban and rural India.
Revving up new model programme
Meanwhile, a range of motorcycles are in the pipeline for an August 4 launch programme across 8 cities dubbed ‘Revfest’. Keita Muramatsu, president and CEO, told Autocar Professional on the sidelines of the Livo launch that motorcycles ranging from 125cc to 650cc will be launched at the Revfest. They will be indigenously assembled at Honda’s three plants at Narsapuram (Karnataka), Manesar (NCR)and Tapukara (Rajasthan).
Currently all three plants are running at full capacity of 4.8 million units per annum and plans are to first utilise the maximum capacity till the upcoming production facility in Gujarat goes on stream by January-February 2016. That will add an additional 1.2 million unit capacity and produce scooters, enabling more flexibility to juggle production at existing facilities.
“Our target this fiscal is to sell around 4.7 million units,” said YS Guleria, senior VP (sales and marketing). The aspirational segment is pegged as a sweet spot for the company and the Livo is the curtain raiser of Honda’s aggressive pace of new motorcycle launches in India during 2015 across segments. With urbane looks and modern styling, the new Livo has a longer wheelbase and the five-step adjustable rear suspension provides more stability on bad roads and at higher speeds. The increased ground clearance also allows it to tackle rough terrain. Other highlights include a two-piece muffler followed, new tail-light and strong grab-rails along with tubeless tyres.
Despite the overall two-wheeler industry seeing flat growth of 0.64 percent in Q1 FY’16, HMSI sold 10,142,62 units (+6.37 percent) with its stable of automatic scooters being big contributors. While the scooter market grew 7 percent in Q1 FY’16, HMSI grew 20 percent in scooters.
“We would like to capitalise in the scooter market and consolidate our position in the motorcycle segment. In the first 3 months of this fiscal, we added 100,000 additional volumes – that means we are selling more than 30,000 units every month compared to last year,” said Guleria. “It has been a tough time for the industry during Q1 FY’16. While the scooter segment continues to grow, the motorcycle market has experienced 2 percent negative growth with the majority being in the 100-110cc mass segment.”
Overall, HMSI is looking to increase its share in the scooter market from the current 59 percent to 65 percent in FY’16 especially with the growth momentum mainly centered around urban areas.
The company is bullish that the motorcycle segment aspirational buyer’s sentiments are still buoyant and positive. Since the new Livo will cater to this buyer, it is expected to garner good volumes.
Overall in scooters, the company has a total of 35,000 bookings (5 days of bookings) compared to existing sales with female customer footfalls increasing at dealerships. The two-wheeler maker is optimistic that the second quarter will bring good tidings for the industry. Single-digit positive growth is projected with the rest of the nine months of the fiscal chalking 6-7 percent growth. Honda is also following the same pattern with the industry levelling out at a growth of 5-6 percent in 2015-16.
Also read: HMSI readies inventory of up to 30 CBR650Fs before launch next month