Posts Tagged ‘hero honda’

Hero Honda comes up with a price hike announcement

Wednesday, June 9th, 2010

Country’s giant two-wheeler maker, Hero Honda, has come up with a shocker of a announcement for all bike enthusiasts and to be Hero Honda customers.

The company, after releasing its sale figures, few days back, has come with an announcement that HH models will now come with a dearer price tag. Rising global steel prices as well as tyre prices has prompted the company to take this tough decision, according to the company spokesperson Anil Dua. The price increase will be from Rs. 500 to 1000 and it should be noted that Hero Honda has not hiked its product prices from 2008.

But there is a thing to cheer too here- that our favorite Hero Honda Splendor which is also the super hit bike model amongst masses and Hero Honda Karizma are spared from the price hike.

Otherwise Hero Honda Super Splendor, Hero Honda Glamour and Hero Honda Hunk 150cc and Hero Honda CBZ Extreme will now be available at 1000 rupees extra cost.

Will the announcement slip Hero Honda’s position? Time will say if this will affect the company’s popularity- maybe we will have to wait for the next sales figures to figure it out.

Best 125cc bikes in India

Monday, January 11th, 2010

Which is your choice from the 125cc bikes in India?

India is a big market for two-wheeler bikes segment. Ranked next only to china, Indian consumers are always on their look out for feature-packed bikes that give value for their money. To cash in on this ever growing sentiment and also the consumer behavior major bike making majors in India from Honda to Bajaj seem to have their focus set on designing, developing and launching models pitted against adversaries in the 125cc bike segment. The best thing about this segment is that the bike models that fall in this category guarantees the basic functionality of say speed, performance and also fuel efficiency at an affordable cost to those bike enthusiasts looking forward to buy a commuter bike for the first time.

In this segment Bajaj has incorporated a new technology in its engine. It is called DTS-Si Digital Twin Spark –Swirl Induction aiming for higher fuel efficiency for its customers-Bajaj Platina DTS-Si. Bajaj strategically focused on its R&D to launch newer models and upgrade already existent ones in this segment. This bikes performs effectively even in low RPMs. Bajaj Platina DTS-Si is best for city rides with soft suspension and drum brakes at both the front and rear ends. The bike is slim and short but it’s not as stunning as the Honda Stunner.

Then, there is Bajaj Discover 125cc. The bike model is quite trendy and stylish. It hit the market with electric start as well as a digital console. But the unique feature of 125 cc model is the digital twin spark ignition (DTS-i) technology. Bajaj Discover 125cc model guarantees better fuel efficiency than its competitors. One can enjoy good riding experience with the Bajaj 125 cc model; however amongst its adversaries in the 125cc segment, Bajaj Discover bike looks smaller.

Now leave the Discover and the Platina behind and get your hands on the new baby Pulsar; Bajaj Auto launched its Pulsar variant P135 LS on December 09, 2009 pitting it against the Honda Stunner. The styling looks good and the split seat and split grab rails with disc brakes in the front and the bikini faring of the headlight all make it quite a decent metal in the 125 cc segment. There are actually many uniques to Pulsar 135cc, and it certainly is a value for money from the looks (a Rs. 51,000 ex-showroom price in Delhi) and we will come out with a detailed review on the Pulsar 135 in the coming days.

Honda Stunner from the Honda stable has been an impressive bike in this segment wooing youth for sometime now. The bike’s engine generates 11 bhp at 8000 rpm and can accelerate to 60kmph in just 5.2 seconds. Now that makes the Honda Stunner the fastest bike in the 125cc segment. Besides stunner has killer looks with a stepped-up seat and fuel tank. The buzz with the Honda stunner is its gorgeous styling with also the extended cowl. Again, Honda stunner is better suited for rides on the city roads than cruising along the highways. Weight distribution in this bike is quite impressive. Stunner has been raved for its excellent brakes as well. This is the bike that oozes in style statement and definitely for the under-20 bike riders.

Another good blend of high-end sports bike and low-end bikes of the 100cc is the Hero Honda Glamour. Glamour is a 125cc. bike from Honda and the styling of this bike is quite unique with hood, and tweaked headlamp and tail lamp designs. It features 4-speed gear system and gives good riding experience to riders even at that high speeds.
The Honda bikes are great for the first-time bike enthusiasts and if you think of upgrading your bike in the later years, Hero Honda bikes also come with good resale value as the engines provide with great mileage even after that long-term use.

But if you are looking for a decent look and do not want to compromise on mileage Honda Shine is a sure good bet. It does not feature that sporty look thingy and appeal, but has an in-built comfort level that any office commuter would definitely like to enjoy on a day to day basis. At low speed one can enjoy excellent acceleration, however, you cannot expect a second glance as Honda Shine is not a bike with beauty; it’s the bike designed just for comfort. This bike is designed to cater to a different segment of population and college goers aren’t given a thought when it was designed and developed.

Then, from the TVS stable there is a new warhorse which is TVS Flame DS 125cc. The Flame DS 125 is a re-launch of already existent Flame; however it comes with new technology developed with TVS’ collaboration with Austria-based AVL. The 125cc engine with three valves is tweaked to give superior performance as well as improved fuel efficiency. TVS Flame DS125 is also the first and the only bike with 3-valve and the twin-spark plug technology (finally the legal feud between Bajaj and TVS ended and Flame DS125 is the first launch from TVS after that). The new TVS Flame DS 125 comes with a price tag of Rs. 49,200 and it just a little higher than the existent Flame. Available in the color options of red and black, this should be a deal for the money.

So, for the Indian roads, the 125cc segment is getting hotter and hotter with newer launches, upgrades and makeovers quite often. Grabbing the market share with innovative products has been the mantra adopted by most of the bike makers in India. However, the one that sells the most will depend on the particular population segment. If you are a college-goer and would love to sport a style it might be Honda Stunner, but if you are looking for a commuter bike that is a value for money you could probably settle in with the Bajaj bikes.

TVS and Hero Honda sales up in August

Monday, September 1st, 2008

CHENNAI: Two-wheeler manufacturer TVS Motor Co has logged 11 per cent volume growth in August 2008, selling 114,321 units against 102,734 units in the corresponding period last year.

During the month under review, TVS sold 52,304 motorcycles compared to 46,235 units in August 2007, registering a growth of 13 per cent.

Scooter sales grew by three per cent from 24,645 in August 2007 to 25,392 units the previous month.


Exports continued its upward trend, posting a growth of a 51 per cent. The company exported 18,083 units of two wheelers in August 2008 against 12,006 units in the year-ago period.

NEW DELHI: Country’s largest two-wheeler maker Hero Honda today reported a 26.84 per cent jump in its domestic sales in August at 3,05,516 units, against 2,40,875 units in the corresponding month last year.

The cumulative sales for the April-August period this year stood at 14,81,077 units, compared with 12,44,919 units in the corresponding period last year, reflecting a 18.97 per cent growth, the company said in a statement.

The company said it has strengthened its share in the domestic motorcycle market by over 55 per cent.

“Our strategy is yielding results… however, the industry continues to face uncertainty on account of high interest rates and overall credit squeeze,” Hero Honda Motors Senior Vice President (Marketing and Sales) Anil Dua said.

The coming festival month of October would be crucial in determining the overall outlook of the industry for the rest of the year, he added.

Hero Honda to launch 11 models in 2-wheeler segment

Wednesday, August 20th, 2008

NEW DELHI: Two-wheelers manufacturer Hero Honda is all set to launch 11 new models of two-wheelers in next 13 months across various categories.

Speaking at the 9th CII Marketing Summit, Hero Honda senior vice president marketing and sales Anil Dua said, “We have already launched one new model of Splendor and now plan to launch the rest 11 models in next 13 months.”


At present the company is the market leader in the 100CC category with a market share of 63 per cent while in the 150+ CC category it enjoys a market share of 13 per cent. It has 24 per cent market share in the 125 CC categories of two-wheelers.

Recently the company had increased the price of its products across various categories various models by up to Rs 1,500 largely due to increase in input cost.

“We have increased the price of our products from Rs 100 to Rs 1500 mainly due to increase in input costs because of increase in inflation. The minimum increase in price has taken place in the entry-level bike CD Delux, the price for which has been increased by Rs 100. And its not that only Hero Honda has increased the prices; even other manufacturers have been forced to increase the prices of their products,” said Dua.

When asked about the company’s marketing plan for the upcoming festive season, Dua replied, “During the festive season we will not be concentrating too much on advertising. Our main focus will be ensure that the full range of our two- wheelers are available across the country.”

Dua noted that the company will not shift its focus from the 100 CC category. He further added, “Since we are the leaders in the 100 CC category, we will not shift our focus from that category. Our main plan will be to launch new products in various categories.”

Hero Honda, Bajaj and TVS hike prices

Friday, August 8th, 2008

NEW DELHI, Aug 7: Reeling under heavy pressure from rising input costs, major two-wheeler makers of the country, including Hero Honda, TVS Motor and Bajaj Auto, have hiked prices of their products.
Country’s largest two-wheeler maker Hero Honda today announced to increase the prices of its 100cc bikes by up to Rs 850 on account of rising input costs.
“In view of consistently rising input costs, we have raised the prices of our product range to partially offset this increase. For example in 100cc range, the price increase is limited to Rs 850,” the company said in a statement.
The company, however, maintained the price hike had been restricted only to its 100cc bikes as of now.


Chennai-based TVS Motors had taken a price hike about 15-days back across its various product ranges.
“We had increased the prices of the Star range of 100cc bikes by about Rs 1,000, while that of Apache by Rs 1,500,” TVS Motor Co general manager (marketing) Mr K Ramakrishnan said.
He, however, said the company had not tinkered with the price of its 125cc bike Flame, which is available at a price range of Rs 46,000 and Rs 48,000.
Country’s second largest two-wheeler maker Bajaj Auto CEO (two-wheelers) Mr S Sridhar said the company had also undertaken a price increase about 15 days back.
The company had hiked prices of its 100cc bike Platina and 125cc motorcycle XCD slightly less than Rs 1,000.

Hero Honda hikes 100cc bike prices

Thursday, August 7th, 2008

NEW DELHI: Country’s largest two-wheeler maker Hero Honda on Thursday increased the prices of its 100cc bikes by up to Rs 850 on account of rising input costs.


“In view of consistently rising input costs, we have raised the prices of our product range to partially offset this increase, for example in 100cc range, the price increase is limited to Rs 850,” the company said in a statement.

The company, however, maintained the price hike has been restricted only to its 100cc bikes as of now.

Hero Honda to increase production capacity at Haridwar

Monday, August 4th, 2008

NEW DELHI: Bike market leader Hero Honda plans to raise daily production from its Uttarakhand factory nearly four-fold by the end of this fiscal to derive tax exemption benefits the state offers to investing companies.

But despite realizing higher earnings, the company has ruled out any major discount schemes in the upcoming festival season in October.


Ravi Sud, finance head, Hero Honda, told TOI that the company was currently producing around 1200 bikes daily from its Haridwar plant in Uttarakhand. “While we produced only 48000 units in the first quarter, production from the plant is gradually being ramped up. We hope to reach levels of 4000 units daily by the fourth quarter (January-March’09),” Sud said.

The company currently has two factories in Haryana, but plans to part-shift production to the new factory. Uttarakhand offers full exemption from excise for 10 years, while giving complete income tax exemption for first five years and reduced levels for the next five years.

While exemption on income tax gives Hero Honda higher profits, the exemption on excise helps the company manufacture bikes cheaper, giving it more elbow room to price products competitively.

The majority of production at Haridwar is of Hero Honda’s best-seller Splendor model and higher volumes would mean greater profits. Production at Haridwar has prompted the company to up its net profit projections for this fiscal as its tax goes down.

Sud said the annualized tax rate was likely to come down to 22% from 31-32% earlier, leading to lower provisions in all the four quarters of this fiscal. The company beat street expectations in the first quarter itself as it reported a good 43.7% rise in net profit, the higher earnings coming at a time of high raw material costs and greater advertising spends.

Sales for Hero Honda grew 11% in the April-June’08 quarter, faster than the industry’s 8% growth rate. But marketing head Anil Dua said the momentum would cool down In the coming months due to record high interest rates (on retail finance) and tight retail financing. “The current industry figures do not reflect the true underlying negative sentiment,” he said.

Dua said even the festival season, where sales normally peak, was likely to be a tough period. “The festival season will be a true test for the motorcycle industry this time… (and) going forward, you may not see a double digit growth for the industry,” he said. The forecast appears alarming considering that the poor growth rate is projected after a year (2007-08) where bike sales fell 12%, providing a low base.

While the bike industry plunged into a undergrowth last fiscal, Hero Honda managed to insulate itself from a major downturn. Asked whether the company would give discounts in the festival season, both Dua and Sud said there were no such plans. “This year too we would not offer any big discount schemes during festivals,” Dua said.

Hero Honda sales up 40 percentage

Friday, August 1st, 2008

NEW DELHI: Hero Honda on Friday reported a 39.8 per cent jump in sales in July at 281,317 units as against 2,01,191 units in the corresponding month last year.

The company said cumulative sales for the April-July period this year crossed a million mark at 11,75,561 units as against 10,04,044 units in the corresponding period last year, reflecting a 17.08 per cent growth.


“We continue to drive growth in the domestic motorcycle market despite all the reviling constraints on account of the high interest rate regime and double digit inflation. We will persist with our strategy of strengthening our brands and expanding new ma rkets in semi-urban, rural and upcountry areas,” Hero Honda Motors Senior Vice-President (Marketing & Sales), Mr Anil Dua said.

Fullerton India and Hero Honda tie-up

Tuesday, July 29th, 2008

NEW DELHI: Fullerton India Credit Co Ltd, one of the fastest-growing NBFCs, on Tuesday signed an MoU with Hero Honda Motors Ltd to offer consumer finance for buying two-wheelers at Honda dealerships.

“Our understanding of the small credit market in India and our international experience in the mass market segment will be beneficial in servicing the wide spread network of Hero Honda Motors. We see a lot of synergies in this tie-up. Hero Honda India’s leading brand of two-wheelers targets customers in the same mass market as we do in urban, semi-urban and rural areas,” said G S Sundararajan, managing director & CEO, Fullerton India Credit Company Ltd.


“Our tie-up with Fullerton India is timely as we are expanding our reach to newer markets in smaller towns, besides consolidating our positions in the traditional markets. Fullerton India is a unique financial partner with its focus only on the mass market segments in urban and semi-urban areas. It is primarily engaged in providing loans to the salaried and self-employed. It already enjoys a good equity with the customer base and has an enviable network of 800 branches across 380 centres. We hope their direct presence in each of our dealer locations will greatly enhance customer service, making it easy for our customers to buy our products. This will further strengthen our dealerships and help us garner a greater market share,” said Ravi Sud, chief financial officer, Hero Honda Motors Ltd.

The tie-up will enable Fullerton India to offer Hero Honda customers access to its financial services at Hero Honda’s extensive dealer network. Through this MoU, Fullerton India will set up its counter in each Hero Honda dealership to offer finance to Hero Honda customers. This will be like an extension counter of the local branch of Fullerton India.

Fullerton India is India’s fastest growing retail financial services company, with a network of over 800 branches spread across over 380 locations in the country. Fullerton India offers unsecured loans for personal and business purposes, mortgage and 2-wheeler loans and also distributes third party general, automobile and life insurance products.

Hero Honda Q1 profit jumps 44 percentage

Tuesday, July 29th, 2008

NEW DELHI: Country’s largest two wheeler maker Hero Honda today reported a 43.74 per cent rise in its profit after tax for the quarter ended June 30 at Rs 272.87 crore as against Rs 189.84 crore in the year-ago period.

The total income has also increased by 16.22 per cent to Rs 2,890.25 crore compared to Rs 2,486.90 crore for the corresponding period last year, the company said in a statement.


Hero Honda’s cumulative sales for the first quarter this fiscal stood at 8,94,244 units, a growth of 11.38 per cent over the same period last year.

It had sold 8,02,853 units of two-wheelers in Q1 in the last financial year, the statement said.