The battle between Hero and HMSI (Honda Motorcycle & Scooter India) is essentially a battle between Splendor and Activa. Even though they are in very different product segments, none of them have been able to crack each other's stronghold segments, yet.
HMSI, on Wednesday, introduced its most affordable motorcycle, the Shine 100 in Mumbai at a price point of Rs 64,900 (ex-showroom, Mumbai). The company said that the bike is built to easily navigate city traffic as well as well-equipped to fulfill the needs of the rural customers. The production of the bike is slated to begin next month, and deliveries will start in May, said the company at the launch event.
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Honda's new 100cc motorcycle is RDE (real driving emissions) compliant and can run on E20 fuel. The Honda Shine 100 will directly take on entry-level commuter motorcycles, like the Hero Splendor, HF Deluxe, Bajaj Platina, etc.
Today, Splendor dominates in the less-than-110-cc motorcycle segment, in which Hero has 76.7 per cent market share, and likewise, Honda's Activa dominates in the less-than-125-cc scooter segment, where HMSI has 51.8 per cent share. In a recent interview with Business Today Atsushi Ogata, Managing Director, President & CEO, HMSI said that the company is gearing up to take on Hero with a 100 cc motorcycle and will also focus on the higher cc segments through a series of premium motorcycles.
Even as the future seems arresting, the industry has effectively retreated 10 years in terms of wholesale deliveries—13.44 million units in FY12; peak at 21.18 million in FY19; and back to 13.47 million in FY22. But even as Hero’s sales slid 23 per cent over these 10 years, HMSI grew by 73 per cent.
“We’ve studied the construction of all parts exclusively for India’s rural market and are launching a new 100cc model," Ogata had said. And even as the entry-level motorcycle segment remains under pressure, Ogata said that the timing is just right.
As per experts, HMSI’s 100cc motorcycle needs to match Splendor’s mileage and pricing. Besides, Hero’s extensive reach in rural markets, with spare parts being available at every garage and mechanic shop, makes maintenance easier and cheaper, and gives its products better resale value than all competitors. These are factors HMSI will be hard-pressed to match.