HMSI launches people’s bike in India

Country top two-wheeler maker Honda Motorcycle and Scooter India (HMSI) has introduced entry-level bike in the market but declined to usher in a direct completion with Hero Honda, the leaders of the entry-level bike segment.

The company launched its 110cc CB Twister with a price tag of around Rs 42,000 in the market and hopes to sell 2.20 lakh units of the new bikes during the financial year 2010-11. The bike would be produced at its Manesar facility and it has no plan to shift the plant despite labor’s unrest.

Mr. Shinji Aoyama, the HMSI President and CEO said, “We do not expect any competition with Hero Honda. By introducing a bike in the entry level, we are in fact looking at extending the market.” He further informed that HMSI and Hero Honda collectively owns 65 per cent share in the highly competitive Indian two-wheeler market.

Aoyama ruled out the possibility of cannibalization.

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