Storm the Norm by Anisha Motwani

Author:Anisha Motwani [Motwani, Anisha]
Language: eng
Format: epub
ISBN: 9788129137029
Publisher: Rupa Publications India
Published: 2015-12-31T18:30:00+00:00

Saddling the horse: 2000–2001

The core team knew only too well that it would have only one chance of proving its worth with the very first Honda product in India. Zeroing in on which segment to focus on was a huge challenge in itself. Till the late 1980s, the scooter was the traditional vehicle of choice for middle class Indians, but with economic liberalization at the turn of the decade, there was a sea change in the demands of the two-wheeler customers. In the 1990s, customer preferences had shifted from the economical and convenient scooters to the more stylish, young, fuel-efficient, four-stroke motorcycles powered by advanced Japanese technology. While motorcycles were becoming extremely popular, scooters were perceived to have an ‘aged’ profile and were on the brink of extinction. Assuming that scooters were losing flavour with the Indian consumer, Bajaj, the No. 1 two-wheeler manufacturer then, focused all its energies on manufacturing motorcycles that were flying off the shelves. But the existing partnership for Hero Honda clearly stipulated that the new Honda Company—HMSI—could not launch any motorcycle in the first three years of its Indian operations. This put well over 80 per cent of the Indian two-wheeler market out of bounds for Honda. The remaining niche market, comprising automatic scooters (ATSCs) like Kinetic DX and Bajaj Saffire, was not a volume driver, being limited to urban households, and contributed less than 10 per cent of the Indian two-wheeler industry.

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