The race among the two wheeler makers is getting hotter with Hero Honda setting the target of 5.6 million bikes for the ensuing FY. Earlier Bajaj announced its target of 3 million bikes for this fiscal. If the target is any way new, then it will be an increase of 15% in Hero Honda’s sale volume. In another 12-18 months, there will be 13 new products from Hero Honda- 4new products with 4 major variants and 5 minor variants.
The company’s focus, however, would be on the scooter segment and the premium motorcycle region. By this the company wants to regain its position as the country’s largest two wheeler company. But such information are not confirmed by the company except that the related matters would be let known at appropriate time. Hero Honda’s practice is that it launches one new product a year and the current information about 4 new products in a single stroke indicates that the company is largely concerned with the tough competition.
Bajaj too is aggressive amidst the frequent threats from Honda and Yamaha. In all these speculations, it is to be seen how Hero Honda is meaning its target and the question lies over its strategy to achieve its target. Hero Honda has to take into account the cost factors involving material, interest and above all the competitor’s pricing. The company is eyeing on the tapping of rural pockets, but the mass market is something frightening.