Honda Motorcycle and Scooter India is developing a new 100-110cc motorcycle which will directly compete with Hero MotoCorp’s Splendor. The company plans to launch this motorcycle within the next few months and expand its ‘Dream’ series of mass market motorcycle.
"The new 100-110cc offering is the value-engineered version of the existing 100-110cc bike and will be priced aggressively so it can be positioned in the Splendor segment. Yet again, the company is striving for higher fuel economy as the USP." said a source to ET.
The upcoming 100-110cc motorcycle will be based on the Dream Yuga and is currently codenamed ‘K23’. The Hero Splendor series includes models like the Splendor Pro, Splendor+, Splendor NXG and Super Splendor. These motorcycles generate 25 per cent of total annual sales for the company. HMSI is expecting their new 100cc motorcycle to sell 6 lakh units in 2013-2014.
The Hero Splendor series retails between Rs 40,000 and Rs 45,000 and this is where HMSI will have to price their new 100-110cc mass market motorcycle. If this happens, Hero MotoCorp will surely lose some of their market share to HMSI.