Bajaj likely to acquire Triumph

A formal announcement of a possible brand acquisition is likely during Auto Expo, the annual automotive show hosted by the Confederation of Indian Industry (CII), in the Capital in early 2008. Bajaj Auto is in the fray to buy Triumph, a premium bike maker in the UK.

"Bigger bikes will need to be developed and we understand that most of this market for bigger bikes will be outside the country. And therefore, an acquisition of a recognised brand makes sense. It is likely to be a complete takeover or a majority stake buyout," said Rajiv Bajaj, managing director, Bajaj Auto.

A big-ticket European brand like Triumph will not only put Bajaj products in the premium lifestyle range in India, but also help it expand to developed markets where such bikes tend to dominate. Mr Bajaj said the decision not to pursue Ducati was partly influenced by the fact that the company was in loss-making mode. “I don’t think it makes business sense to buy a struggling brand. While the brand may have the recognition, it is difficult to work around other problems,” he explained.

The acquisition of a marquee brand will also shape Bajaj's future product portfolio. Broadly, the plan is to keep the Bajaj brand focused on the 125-600-cc segment.

Bajaj Auto's thrust on exports is likely to continue, and the company has no plans to establish a manufacturing base abroad or produce bikes catering particularly to export markets. "A BMW does not change a single spring when it is sold in other export markets, and that's the power of the product. I do not think it is profitable to design products for key export markets," said Mr Bajaj.

I hope this acquisition goes through successfully, keeping my fingers crossed.

Source : economictimes.indiatimes.com

Hero Honda Hunk 150cc Pictures + Specification

The rear looks like apache, silencer borrowed from Karizma, headlight resemble the Achiever and overall looks much better than CBZ xtreme. Also the rumor says that the Hunk Will actually replace CBZ extreme and the Cbz extreme would now being discontinued. The hunk will have the same engine as that of the CBZ extreme pumping out same power.

Hero Honda Hunk 150cc finally launched at 55,000

The country's largest two-wheeler maker Hero Honda on Wednesday launched its 150cc bike 'Hunk' at a starting price of Rs 55,000 (at ex-showroom Delhi).

The company has launched two variants of the mobike kick-start and self-start. While kick-star would be available at Rs 55,000, the company would charge a premium of Rs 2,000 for the self-start model which is priced at Rs 57,000.

The company currently sells four models in the premium segment (150 cc+) - Hunk, Achiever, CBZ Extreme and Karizma.















Source : economictimes.indiatimes

Hero Honda is all set to launch Hunk

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