Motorcycles, India’s main mode of transport owing to its lower maintenance cost and fuel efficiency, have an annual sales of 78 lakh units of which 60 lakhs is just for the 100cc bike. The industry is poised to grow to 10 million units by 2012.
To tap this growing market, Honda Motorcycle & Scooter India (a subsidiary of Honda Motors and 11% market share) and Hero Honda Motors (in which Honda Motors has a 26% stake) are planning to launch 100cc entry-level motorcycles, a segment till now dominated by Bajaj Auto and Hero Honda.
