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Honda targets rural market for its new 100 cc bike

Hero MotoCorp has already released Impulse, an on/off-road bike, and Maestro, a gearless scooter, at an event filled with celebrities in London. It is known that Hero MotoCorp has split with Honda in an attempt to establish as a new force by a new name in the market. It now is in the hands of Honda to come up with their innovations. HMSI (Honda Motorcycle & Scooter India, Private Limited), which is a fully owned firm by Honda, has the well-known tag as the world’s fastest two wheeler selling company. They are likely to launch a new entry level 100-cc bike to compete with and increase their market share in the country.

Economic Times reported that five or more management teams that are led by executives from Japan have been appointed by Honda in order to create an entirely new marketing structure for the sole purpose of consistent growth and sales.

Reports suggest that Honda would be planning to produce a bike based on its CD model. The CD platform was well used in the making of Hero Honda CD Dawn and Deluxe, which sold pretty well.


The newly designed Honda bike would target the rural segment. The rural segment sells around five million Hero bikes contributing to nearly half of sales volumes. We have seen launches of bikes with high displacements by Honda, but this new strategy adopted by Honda holds the key for future strategies.

Hero Honda’s earlier 100 cc bikes were a huge success and that is encouraging Honda to introduce a new bike in this segment. The Hero Honda Passion and Splendor were the most successful among all of them. Last year saw Honda sell 26% stake to the Munjal family. An agreement has been signed by Hero to still use Honda’s technology in its products until 2014.

CD brand is owned globally by Honda and Hero owns it jointly too, but only until 2014. Honda plans to introduce a totally new bike with a much improved engine and designs targeting rurally and the youth. Honda plans to establish their brand name strategically in hopes of becoming the major bike manufacturer in India in the coming years. The strategy employed seems to be an important one and would surely pave the way for future endeavours undertaken by Honda in the Indian market.

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