You are here: Home » Companies » News
Business Standard

Honda bets big on recovery of rural demand, upcoming festive season

Rural sales at present are around 23 per cent of overall sales, which is nearly the same as in pre-Covid times

Topics
Honda Motorcycles | Rural economy | festive season

Arindam Majumder  |  New Delhi 

Honda
Rural sales are around 23 per cent of overall sales, which is around the same as pre-Covid times.

Honda Motorcycle & Scooter India (HMSI) is betting big on recovery in rural demand and increase in sales from the

A top executive of the company on Friday said rural demand has almost recovered to what it was last year.

“We were not getting volume uptick till Unlock 3.0, but now with unlock happening in the urban areas as well, close to 95 per cent of our network is open. Almost similar contributions from urban and rural areas are coming, like before the pandemic. So, we are not seeing much of a difference in urban and rural sales,” said Yadvinder Singh Guleria, director, sales and marketing, HMSI.

Rural sales are around 23 per cent of overall sales, which is around the same as pre-Covid times.

The company recently reported domestic wholesale sales of 5,00,887 units in September this year, a 10 per cent growth compared to 4,55,896 units in the same month of 2019.

HMSI’s rival also witnessed a growth of 16.11 per cent year-on-year in its domestic wholesales for September to 6,97,293 units.

This is due to robust recovery in sales of entry-level motorcycles in rural and semi-urban markets after the easing of lockdown measures.

chart


In contrast to other automakers, that said people are preferring more entry-level products, Guleria said HMSI has seen a steady growth of the premium portfolio.

“Even in the recently-concluded sales period, the percentage contribution of premium models far beats that of the affordable version. For instance, in Activa, it’s a more premium model which is being preferred by customers,” Guleria said.

Entry level two wheelers (75 cc to 125 cc) make up almost 75 per cent of the total sales of Indian two wheeler

The company recently announced its entry into the middle-weight motorcycle segment – 300 cc and above – with Highness CB 350. This new offering will compete with market leader Royal Enfield’s Classic 350 and others in the segment.

Guleria said the company will use its BigWing dealership chain to market the product and also bet on a loyalty club.

In order to make the mid-segment 300cc-500cc products more accessible, the company plans to push the ‘BigWing’ dealership count to 50.

Honda is also planning to come up with three more premium products soon which will sell alongside the existing premium line-up of motorcycles.

“The motorcycling community in India is growing day by day and they are a set of customers who look for more premium products and need a personalised approach. We will have an exclusive portfolio for them,” Guleria said.


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, October 09 2020. 19:42 IST
RECOMMENDED FOR YOU
.