It's only a hunk that can woo away the domestic motorcycle market from its slump. And Hero Honda Motors might just have the right ace up its sleeve this time. The country’s largest bike maker is planning to launch its premium motorcycle, the Hunk shortly. Not surprisingly this comes close on the heels of its strongest competitor Bajaj Auto’s launch of the 200 cc Avenger.
A source close to the company revealed: "The Hunk is likely to have a 150 cc engine. In terms of design it is a fantastic looking bike." The new bike will probably sport an all black 156 cc engine.
Other than a torquier mill, the Hunk is touted to have Honda CBR 125 type headlamps, twin discs, split seats and an analog yellow speedo. But when contacted this is all a Hero Honda spokesperson said: "We don’t comment on future launches."
According to industry sources, there are two theories as to why Hero Honda (HH) would be launching the Hunk. Firstly, the company would want to have a presence in the premium bike segment (125cc and above) because the traffic is slowly moving in that direction.
Though the total motorcycle market has slipped by 15.2% this quarter, the premium segment has been witnessing a steady growth for quite some time now. Even this time, big bikes has have zipped ahead by almost 11%.
And also, since this launch comes just after the entry of Bajaj Auto’s much-hyped 125cc Exceed. Compared to other bikes Bajaj claims that the Exceed gives the customer better value for money in terms of power and efficiency, but at a much lower price.
Even TVS Motor’s launch of the next-gen 125 cc Flame reveals a deliberate move by bike makers in this direction.
Therefore, the Hunk might be Hero Honda’s trump card to lure away customers from its rivals by offering a bigger capacity bike at the price of a 125 cc.
To achieve this, initially the company might have to take a hit on its bottom line until larger volumes allow it to break even. But if this is the case it will be a masterstroke that can turn market dynamics on its head.
Secondly, the Hunk could also be used to gain market share in the 150 cc segment, which is the stronghold of bikes such as the Bajaj Pulsar. This move of course is not without the threat of cannibalisation, since HH already has its CBZ Extreme in the same category. Pricing is the key. But will HH take the risk? We have to wait and watch.
Source : economictimes.indiatimes
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