Honda Motorcycle & Scooter India (HMSI) on Wednesday launched its “most affordable” motorcycle Dream Neo, with an aim to increase share in the Indian commuter segment, priced at Rs.43,150.
“Dream Neo is Honda’s next big leap towards creating deep inroads into the Indian commuter segment,” Honda Motorcycle President and CEO Keita Muramatsu told reporters here.
Backed by new product launches and network expansion, the company aimed to grow over 150 per cent in the 100-110cc motorcycle segment, which had nearly 50 per cent share in the Indian two wheeler market, he added.
“Overall, we are confident of customer demand for Honda two-wheelers and eye 43 per cent growth with 39.3 lakh unit sales in FY14,” Mr. Muramatsu said. Last year, the company sold 27.5 lakh units.
HMSI will also be expanding its sales outlets to about 2,500 by the end of this fiscal from 1,950 outlets.
Developed specifically for the Indian customers, the new model is powered by a 110-cc engine and the company claims that it will give a mileage of 74 km a litre.
The company’s 110-cc scooter Dio was its lowest cost two-wheeler so far in the country at Rs.44,718.
On the company’s plans to increase the prices, Mr. Muramatsu said, “Right now, we have no plans to increase the price. But going forward may have to do it depending on the cost of input.”
