The models in the lower segment have received a minimal hike while top models like the Karizma have received the highest hike in prices.

A Hero Honda official -

We have always taken a long-term view on pricing, given its strategic nature. Hence we had consciously held back price increase on most of our products despite the rising input costs and hardening commodity prices

Following this hike, will Bajaj, TVS and Yamaha follow suit?

Source – mydigitalfc.com

According to reports two marketing executives from Hero Honda have been set to Tanzania to conduct a feasibility study for the Splendor. The Tanzanian media reported that the company is targeting rural farmers with this economical bike.

Hero Honda Splendor is the bike in contention for African nations

The company said that currently it is not looking at setting up a plant in East Africa although that is an option they have in mind as it is bound to bring down costs of its products.

Hero Honda exports its products to neighboring countries and Africa could prove to be a very profitable market for the company given the high demand for economical products in that country.

Source – Economic Times

The most successful JV in India, one that has lasted 26 years, Hero-Honda is all set to hit for a complete split by 2014. As a result, the Munjal family is rethinking its marketing strategy for the Indian Bike market.

The family is in talks with major brand marketers and research agencies to revamp its image. The first and the obvious change is that it will drop the ‘Honda’ name from its advertising campaign.

Sources say that the company is more likely to move from parent brand to product brand strategy where the emphasis will be products like ‘Splendor’ and ‘Passion’ rather than on the Hero tag. A new logo is also on cards and will be ready shortly.

From the past 26 years, Honda has supplied the technology and Hero has manufactured the bikes and sold them. But all this will end by 2014, as Honda will no more supply the technology for the bikes.

Hero will have to depend on its in-house research for the same. But if we look at the bright side, Hero could save up to Rs. 5,500 crores on royalty that it is suppose to pay Honda for the technology.

Bajaj’s Discover 100cc has started to clip market leader Hero Honda’s wings in the Indian two-wheeler space. The bike has helped Bajaj increase its market share from 25 to 34 %, while on the other hand Hero Honda’s market share has gone down to 47 % from 56 %.

The Discover 100 cc, which was launched only in July last year has managed to become the second largest selling bike in India in a span of just 11 months. The bike has overtaken Hero Honda’s Passion and is now closing in on the heels of Hero Honda’s bread and butter model, the Splendor.

S Sridhar, Chief Executive Officer, Two-Wheelers, Bajaj Auto -

If the Discover sustains its momentum, it could overtake the Splendor in three to six months. There’s a good chance of it managing to do so, unless Hero Honda spoils the party by dropping prices for Splendor or Passion

To ensure that there is no shortage of its highest selling product in the market, Bajaj will be expanding the its motorcycle capacity by 3,00,000 units from July, which should enable it to produce 1,70,000 units of the Discover 100cc per month. Bajaj is also banking on the Discover 100 cc’s eldest sibling the Discover 150 cc to chip in with sales of at least 35,000 units, once it has made the bike available across the country.

It seems like as if Bajaj can now look forward to more happy months for its Discover 100 cc bike going head, and it will be hoping for the Discover 100 cc to break Hero Honda’s stranglehold of the Indian two-wheeler market and dethrone the Splendor as the new King of Indian motorcycles.

Source – Business Standard

With the emission norms for two-wheelers in effect from April 1st, Hero Honda did not introduce a BS3 version of its best selling bike, the Splendor+.

Hero Honda had been waiting for the final notification on implementation of BS3 emission norms for two-wheelers by the Ministry of Road Transport and Highways which was delayed by 2 months has been issued in the last week of May.

Now, after the arrival of the final notification from the Ministry, Hero Honda has started producing BS3 engines for the Splendor+. This makes the Splendor+ eligible for sale in all the 13 metros. Hero Honda is expected hike the prices of the BS3 compliant Splendor+ by Rs.500-Rs.1000.

The BS3 Splendor+ is good news for the 100-odd Hero Honda dealers in the 13 metros, as they have lost close to Rs. 120 crore in the last two months as they couldn’t sell BS2 versions of the Splendor+.

Source: BSMotoring