With the onset of the festive season, Hero Honda is once again gearing up to launch its upgraded models. Riding on the wave of success that the Splendor brand experienced over the years, Hero Honda has introduced the new Splendor Pro with all the modern-day features and newer graphics. The new bike boasts of features such as an electric start, a pass-switch, lowmaintenance battery, improved headlight output and a wider rear tyre for improved grip and stability. The steering head of the new Splendor Pro has also been strengthened to confidently tackle bumps and potholes. Apart from new graphics the bike gets a new muffler cover, re-styled front visor and a silver colour engine cover.

The Splendor Pro is powered by the trusty 100cc sloper mill that has been religiously serving the Hero Honda econo-commuters for over two decades. This time though it gets minor tweaks and a new-tech that Hero Honda refers to as APDV – Advanced Pro-series Digital Variable Ignition System, which apparently helps in improving the bike’s fuel efficiency as well as refinement. Hero Honda defines its latest upgrade as the New Generation Splendor that is featurepacked and proficient to fulfill the requirements of today’s buyers. With the festive season round the corner, Hero Honda is looking forward to keep its sales chart climbing and it will launch a few more upgrades in the coming months.
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New Delhi: Royal Enfield, the Chennai-based cult bike maker, is planning to more than double its production capacity over the next 18-24 months to cater to the surging demand.

Owned by New Delhi-based Eicher Motors it aims to increase its production capacity to 12,000-15,000 units per month from 5,000 units per month.

Siddhartha Lal, managing director and chief executive officer of Eicher Motors, said, “We are evaluating various ways to increase our production capacity. Over the next 18-24 months, we should be able to bring the new capacity on stream.”

Lal declined to comment on the proposed investment for capacity addition, but industry experts said it would cost the company a minimum of Rs 200 crore.

Now, Royal Enfield produces five models at its Chennai facility. According to Lal, the company is witnessing good traction for its newest range, including Classic 350 and 500, which cost more than Rs 1,00,000.

“We had to adjust the bike capacity marginally to accommodate the Classic range and hence, the monthly capacity had dipped to 4,500 per month, which is now back to 5,000-levels. By next year, this capacity should reach 6,000 units per month,” said Lal.

VE Commercial Vehicles (VECV), a 50:50 joint venture between Volvo Group and Eicher Motors, will invest Rs 800 crore for capital expenditure and setting up an engine manufacturing facility over the next three years.

The company is setting up a facility at its existing plant at Pithampur, Madhya Pradesh, for manufacturing advanced truck and bus engines for Volvo. The facility would be operational by the start of 2013.

VECV aims to increase its market share to 15 per cent, from 2-3 per cent, by 2015 in the heavy commercial vehicle segment. For the time being, the company wants to focus on the 5-tonne and above segment, as there is more scope for expanding margins, compared to the volume generating small commercial vehicle segment.

However, Lal, who is also the managing director and chief executive officer of VECV, said the company could look at the sub-one tonne segment, where Tata’s Ace had a majority market share. “We could look at that segment once we have our plans through for the heavy and medium segment,” said Lal.

A senior company executive said Eicher branded products would be sold on a pilot basis by utilising Volvo’s distribution network in Indonesia.

Swaraj Baggonkar
Business Standard

Pune: Nearly three years after Bajaj Auto Ltd (BAL) pulled the plug on scooters, and stopped producing them at the Pune plant, Mr Rajiv Bajaj, Managing Director, has given the assurance that the company will return to making scooters.

The promise, however, comes with the rider that this will happen only after BAL gains recognition as a player of importance in the global motorcycle market.

“We will make scooters at some point of time,” Mr Bajaj told shareholders at the company’s annual general meeting (AGM), adding “but we have to be a globally dominant maker of motorcycles before that.”

Outlining the strategy, he said BAL wanted to become a specialist in marketing. “I don’t think motorcycles that succeed are (necessarily) better products, they are perceived as better products,” he said, adding that he wanted to compete by creating a right perception.

“When markets evolve, businesses have to be specialised, and only branded businesses make money.”

The way to specialise is through sacrifice, Mr Bajaj said, maintaining that by sacrificing scooters, BAL came to be perceived as a motorcycle specialist. “Though we make 3.5 million bikes (a year), our global market share is only 10 per cent,” he pointed out. “There is no reason why we cannot push for 30-40 per cent and do one thing well,” he said, reiterating, “We never said we’ll not make scooters, not at this point.”

Speaking about the car project, Mr Bajaj said that a new platform of three and four-wheelers was being developed and would most probably be made at Waluj which will help keep costs down. “We are not trying to make cars, but money-making cars,” he emphasised, adding that BAL believed in operating with 20 per cent EBITDA margins.

“We will put out a four-wheeler by 2012 and the capex on the project will be less than Rs 500 crore,” he said.

Alka Kshirsagar
The Hindu Business Line

New Delhi: The country’s second largest two- wheeler maker Bajaj Auto Ltd (BAL) on Tuesday launched a new version of its cruiser bike, Avenger, priced at Rs 69,000 (ex- showroom Delhi).

bajaj-avenger 200cc

The new bike is powered by a 220cc engine, equipped with the company’s patented DTS-i technology. Commenting on the launch, Bajaj Auto President (Motorcycle Business) S Sridhar said: “The journey that our R&D team started few years ago continues its forward march and we have further enhanced the pleasure of riding a genuine cruiser bike.”

The Avenger, which is previously available in 200 cc, will now have a bigger engine delivering more power. It will also have features like a DC circuit that gives it a constant light beam at all riding speeds.

PTI
See this story in: The Economic Times

New Delhi: Harley-Davidson has launched its first Indian dealership as it pitches the “freedom of the open road” in a nation with some of the world’s most congested traffic, the US company said Saturday.

Harley-Davidson, the iconic heavyweight motorcycle maker, launched its first outlet in the southern city of Hyderabad on Friday and plans to open more across the country, the company said in an emailed statement.

“We look forward to initiating a new era of motorcycling,” said Anoop Prakash, managing director of Harley-Davidson India.

The Milwaukee-based company, whose brand was made famous in the movie “Easy Rider”, is using the slogan “Hear the Roar!”.

Prakash said bike is well suited for Indian roads due to its weight and hulking design, adding that the company plans to launch in other cities before the end of the year, including capital New Delhi and financial hub Mumbai.

But while India is the world’s second-largest motorcycle market, most sales are of small, inexpensive bikes that can weave through traffic in India’s clogged cities easier than a 1500cc Harley “Fat Boy”.

India does have open roads outside the large cities but many are potholed and make for less than easy riding.

The bikes, which loyal riders affectionately nickname Hogs, are made in the United States and shipped to India where they face hefty custom duties.

The cost of the bikes in India start at 695,000 rupees (14,917 dollars) and range up to 3,495,000 rupees, said a spokeswoman.

Moving into India is part of Harley Davidson’s strategy to break into emerging markets as its customers in developed markets are ageing.

The company, which cites the lure of India’s rapidly growing economy and rising middle class, is launching 12 variants of the bikes in the country.

http://timesofindia.indiatimes.com/biz/india-business/Harley-Davidson-opens-first-Indian-dealership/articleshow/6152187.cms