Hero Group To Make 3-Wheelers
After their split from Japan based Honda Motors, Hero Group is looking to go into in previously untouched territories. As reported earlier, the corporation started exploring the idea of making Diesel bikes for Indian market. Now, according to company’s official statement, Hero Group is scheduling to enter 3-wheeler business soon. According to company sources, Hero Group may come up with 3-wheeler passenger carrier (auto-rickshaw) first, followed by a commercial goods mover.
The plan was discussed with the vendors in Delhi, according to the same sources. “The group is examining the option of re-engineering its bigger two-wheeler engines to make three-wheelers. We have been asked to prepare for the admission into three-wheelers and other segments,” said a Delhi-based vendor who attended the meeting. Executives from over 50 companies, which supply crucial parts to Hero Honda, took part. The Hero group will start implementing these plans once it signs a definitive agreement with Honda Motor Company. The Hero Honda spokesperson said there were no immediate plans to enter the three-wheeler segment. Three-wheelers are referred to as auto-rickshaws in India. “Under the proposed new arrangement, several opportunities may exist in terms of new segments and product categories, but at present there is no such plan on the anvil,” the Hero Honda spokesperson said.
Hero Honda Plans 400cc Diesel Bike
Hero Honda is planning to explore diesel powered bikes by creating a new segment. Hero Honda is in talks with a Chennai based firm and an agreement is expected to be signed in May, 2011. The diesel powered 400cc Hero Honda bikes will be launched early next year, priced aggressively. The Hero Group is planing to assemble the bikes at its Dharuhera facility, where it is also developing its R&D facility. The Hero Honda sees a potential of 1.5 lakh units in the 1st year itself, which is impressive.
Honda targets 5 million vehicles sale in 5 years
After separation of India's numero uno two-wheeler company Hero and Honda, Honda Motors want to grab the Indian motorcycle market larger than what it has now. The company has decided to sale 5 million two wheelers in short time of 5 years. HMSI is the 100 percent subsidiary of Honda Motors Japan which is doing well in the market and ready to hold the target. To achieve the target, the company is attracting buyers with it's new launches that includes Honda CBR250R and Honda CB Twister.
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According to some information, HMSI is aiming to triple the sales within 5 years; at present, it has total production capacity of 1.55 million vehicles per year. The company is reported to set up its second facility in Rajasthan and after its production capacity might be 2.2 million per annum; the production in the facility to start from second half of 2011.
On the other hand, Honda Motorcycle & Scooter India Pvt. Ltd is planing to set its third production plant in the state of Andhra Pradesh to get the 5 million vehicles per annum target within 5 years. It is expected that this facility will be opened by the end of this year. According to the officials, the company to invest Rs. 10 million in the market to increase its production in the this short time. It is also planning to produce 250cc bikes in Indian facilities. Moreover, the company is working to spread its dealership network in Indian rural and town areas along with small cities.
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