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    Thread: Hero Motor Corp planning for low cost bike which would be priced under 30K

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      Hero Motor Corp planning for low cost bike which would be priced under 30K

      Hero MotoCorp, India’s leading two wheeler maker and the world’s largest two wheeler maker by volumes, mulls low cost motorcycles that could be priced under INR 30,000. The over arching idea here seems to be that of targeting a brand new segment of buyers, who previously could not have afforded a two wheeler.

      So, in other words, Hero MotoCorp could do a Tata here, by launching a sub 30,000 rupee motorcycle, which in the words of the late management guru CK Prahalad, could be aimed at fortune which rests at the bottom of the pyramid. The Indian motorcycle market isn’t new to price wars in the entry level commuter motorcycle segment, where Hero MotoCorp and Bajaj Auto had locked horns in the early part of the noughties, when both motorcycle makers launched entry level variants like the Hero Dawn and the Bajaj Boxer 100.

      Bajaj even went a step forward with the Bajaj BYK entry level commuter motorcycle priced at about INR 30,000. The Bajaj BYK 100 did not sell well and in due course of time, both Bajaj Auto as well as Hero MotoCorp(Known as Hero Honda back then) backed off from the price wars as Bajaj began focusing on the premium motorcycle segments even as Hero MotoCorp manage to retain its stranglehold on the Indian commuter motorcycle market. A big reason for both Hero MotoCorp and Bajaj Auto not getting into the sub 30,000 rupee segment was the increase in production costs which made producing such a motorcycle a difficult proposition to fulfill.
      2012 Hero MotoCorp HF(CD) Dawn 100cc Commuter Motorcycle used as an illustration

      Last year there were news about TVS Motors aiming to get into the sub 30,000 rupee motorcycle segment and therefore, the coming days could see a lot of action in a segment that has bee relatively quiet ever since the Bajaj BYK’s discontinuation from the market. Meanwhile, here is what Pawan Munjal, the Managing Director of Hero MotoCorp has had to say about his firm’s plans of building a low cost motorcycle,

      We believe that there is a very large mass of customers in that segment — at the bottom of the pyramid. We’re working on trying to come up with something, but it’s not easy with the way costs are going up. But, we will have something. We’ll be looking at prices which are much lower than where we currently are, otherwise it makes no sense. The market is for people who don’t have any (personal) transport at all. It’s easy to make something like a moped, but does that serve your purpose. A moped is not as successful in this country since it is not rugged and sturdy as per the usage our consumers — the kind of loading patterns and driving habits. We have to have a real motorcycle.

      Source - ICB
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      Bajaj's attempt at this segment was with the BYK

      it shared parts with then in production M80.

      Name:  01 Bajaj BYK.jpg
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