Honda launches CB Shine SP; targets 50% market share in 125cc segment

True to its commitment to rollout 15 new models in CY 2015, Japanese two-wheeler maker Honda Motorcycle and Scooter India (HMSI) has launched its 15^th model – the 125cc 4 stroke CB Shine SP to add to its CB Shine stable. Its frontrunner model in motorcycles, the CB Shine launched a decade ago has garnered the largest market share of 46 percent in the 125cc motorcycle segment in the country.

Equipped with a 5 speed gear box to reduce vibrations at high speed the CB Shine SP comes in three variants priced at Rs 59,900 for the self-drum alloy, Rs 62,400 for the self-disc alloy and Rs 64,400 for the CBS edition (all ex-showroom prices). It is based on Honda’s Eco Technology and comes with an advanced Combi-brake system and a digital analog meter console. It also has the longest wheelbase in the segment and a higher ground clearance, 5 step adjustable suspension for greater riding comfort  and delivers a mileage of 65kmpl.

Keita Muramatsu President and CEO said on the sidelines of the launch that the 5-speed gearbox for the new model was developed over a two-year period. With this latest addition to the CB Shine portfolio, Honda is further strengthening its highest selling motorcycle portfolio and is bullish of reaching a 50 percent market share in this segment. The 125 cc bike segment is the second largest sales churner for the two-wheeler industry after the commuter category that covers 100-110cc bikes. It contributes 11.2 percent of the sales of the two-wheeler industry.

The CB shine SP to be made at the company’s Manesar plant  will be produced in volumes of 3 lakh units annually considering that over the last decade it has garnered 43 lakh customers for the CB Shine motorcycle.

Despatches of the bike have reached dealerships and it will be immediately retailed at showrooms. The Honda CB Shine SP competes with the Bajaj Discover 125, Yamaha Saluto and the Hero Glamour in its segment.

Hornet 160R to be launched in mid-December

Interestingly, while Honda has rolled out its fifteenth model, its fourteenth model the new Hornet 160R will be launched in mid-December though it was unveiled earlier. This despite the fact that a higher demand is expected for the 160cc Hornet R in the popular 150cc-160cc segment.

“We have reasons for delaying its launch to after the CB Shine SP. It has taken longer to develop it,” clarifies Muramatsu.

With CY 2015 seeing the rollout of 15 models of which 8 sport cosmetic changes and 7 are brand new two-wheelers, CY 2016 is expected to see consolidation as well as marketing and sales initiatives to build up sales.

HMSI's fourth new plant and its largest scooter facility globally goes on stream in Q1 2016 at Gujarat with a production capacity of 1.2 million annually taking up its total capacity to 5.8 million units per annum and giving it more flexibility to juggle production of two-wheelers at all its existing three plants.

With the total installed capacity spiralling with the Gujarat plant another feather in HMSI’s cap will be getting catapulted to the numero uno position as the largest contributor of global sales of Honda. Currently it ranks second at 24.6 percent of the global share after Honda Indonesia that has a production capacity of 4.7 million per annum and is a notch higher in terms of global share compared to 4.6 million annual capacity of HMSI. With this 1.2 million step up in capacity HMSI will overtake Honda Indonesia. Muramatsu says that in Indonesia Honda commands a 70 percent share of the market compared to the 26 percent share of HMSI. But with a slowdown happening in Indonesia sales of two-wheelers are expected to face a dip while the Indian two-wheeler market is on the recovery mode. Growth in scooters have already been racing ahead with the April-October 2015 SIAM results indicating a 13.94 percent growth compared to a 2.57 decline in motorcycle sales in the domestic market. Overall the two-wheeler industry notched a marginal uptick of 1.72 percent during this period.

But YS Guleria senior VP sales and marketing is bullish of recovery in the rural markets and a burgeoning of motorcycle sales in 2016-17 that will push two-wheeler sales skywards. HMSI grew 5.33 percent during April-October with sales of 2,602,312 units while the festival month of October showed an increase of 19.41 percent.

The two-wheeler maker posted sales of 2.2 lakh units on a single day on dhanteras in November  with bikes leading the attack with 53 percent of the chunk.