The Hindu : Business : Hero Honda rolls out 100 cc Splendor NXG

Online edition of India's National Newspaper
Tuesday, May 29, 2007
ePaper

Business

Business

Hero Honda rolls out 100 cc Splendor NXG

Special Correspondent

Two variants will cost Rs. 40,990 and Rs. 41,990 ex-showroom Delhi

NEW DELHI: Hero Honda Motors on Monday rolled out another 100 cc motor-bike model, Splendor NXG.

Splendor is the largest selling brand for the company with sales reaching the 1.1-million mark in 2006-07. It forms part of the deluxe segment, accounting for slightly over half of the total market and the company has about 67 per cent share in this segment. The company offers other brands like Passion and Glamour in this segment.

"We believe that the 100 cc segment is a huge market for us. We have a strategy in place and we will continue to focus in this segment,'' Hero Honda Motors Managing Director Pawan Munjal said after launching Splendor NXG in the deluxe segment. The bike will come in with two variants of spoke and cast wheels with the respective price tag of Rs. 40,990 and Rs. 41,990 (ex-showroom Delhi).

To maintain market share

"Every company has its own strategy and we have our own...'' was his response when asked if shrinking margins on lower-capacity bikes would make Hero Honda think of gradually exiting this segment like others.

HHML Vice-President (Marketing and Sales) Anil Dua said the company had crossed over 50 per cent of market share in the last month and was looking at maintaining it this year and "Our intention is to maintain the over 50 per cent market share this year".

Despite the domestic slow down witnessed by this segment, Hero Honda has gained sales volumes and has, in fact, driven the industry growth. As against 11 per cent growth, HHML recorded 19 per cent growth in January this year. Similarly, when the industry dipped to a negative five per cent in April, "we reported a five per cent increase in sales," Mr. Dua said, adding that there would be sales of Splendor brand beyond 1.1 million units on the strength of the new model.

Printer friendly page
Send this article to Friends by E-Mail

Business