Honda Manages 50% Cut in India Output

Honda Motor Co.'s production cut in India will continue until July due to lower supply of parts from Japan after the March earthquake and tsunami forced auto makers to shut factories there, a senior executive at its local unit said Thursday. A three-month output cut is likely to further affect Honda's India sales, which fell 4% to 59,643 vehicles in the financial year ended March 31 because of a lack of new models and increased competition from the likes of Toyota Motor Corp. and Volkswagen AG.

However, Jnaneswar Sen, senior vice president for sales and marketing at Honda Siel Cars India Ltd., said the production cut is unlikely to delay the introduction of the Brio small car, scheduled for September. "We expect supply of parts to normalize after July only. Till then, production will be half, or about 2,500 vehicles a month," Mr. Sen said. Honda Siel Monday said it will cut vehicle production by about half at its Greater Noida plant in northern India's Uttar Pradesh state from May but didn't say when production will return to normal levels. Honda Siel sources some engine and electronic parts from Japan.

The Japan disasters also impacted production at Toyota's local unit, Toyota Kirloskar Motor Pvt. Ltd., which said last week that both its plants in southern India's Karnataka state will operate at about 30% of normal capacity from April 25 to June 4. Honda Siel, 99.9%-owned by Honda Motor and 0.1% by India's Siel Ltd., makes the Jazz hatchback as well as the City, Civic and Accord sedans at the Greater Noida plant. The factory has an annual installed capacity to make 100,000 cars, or about 8,300 cars a month, but currently makes about 5,000 cars a month, in line with demand.

The company has another factory in Alwar in northwestern India's Rajasthan state, where it makes engine parts such as connecting rods and crank shafts for the Jazz and City models. Mr. Sen said the company is hopeful that parts constraints will be resolved before the introduction of the Brio. "We are planning to introduce the Brio around the festival season and are hopeful that the situation will improve before that," he said. The festival season in India usually starts in late September.

The Brio is crucial for Honda to improve its position in India where small cars make up for two-thirds of total passenger vehicle sales. Demand for new cars has been rising steadily in India thanks to rising personal incomes, new models and cheaper loans. Local car sales grew 30% last financial year, the fastest in more than a decade, to 1.98 million units. Sales are expected to grow between 16% and 18% this financial year, according to auto industry body the Society of Indian Automobile Manufacturers.

Separately, two auto parts suppliers to Honda, who didn't wish to be named, said the company is aiming to sell 50,000 units of the Brio in the first year after introduction. However, Mr. Sen said the company hasn't fixed any sales target. "We would surely like to sell as many Brios as possible," he said. "We are yet to firm up any sales target for the Brio as we haven't decided on the price. Pricing plays a crucial role in deciding how many cars can we sell."

Hyosung to unveil 250cc bikes in India

 

South Korean S&T and Garware group based on Pune plans to form a joint venture to produce and deliver motorcycles in India.Garware Motors has planned to launch the 650-cc GT650R and the 700-cc ST7 S&T heavy bikes in India on April 20.The price of the GT650 bike will be below Rs.5 lakh and similarly ST7′s price will be below Rs.6 lakh.

The Managing Director of Garware Motors,Diya Garware informed that S&T is keen to enter India. They plan a manufacturing JV by mid-2012.If and when the JV is formed they will enter the 250-cc segment.

She also revealed that the homologation process is over and they expect to get the ARAI certificate by next week. The company plans to open showrooms in Delhi, Mumbai, Goa, Bangalore, Chennai, Hyderabad, Chandigarh, Kochi and Kolkata, in addition to Pune. It has created a new Rs 20-crore assembly plant in Wai near Pune.It aims at a sales of 2000 bikes per year.It is forming a pan-India bikers’ club, Hyfliers,for developing its bikes.

Hyosung 250cc motorcycles to arrive market next year

 

The average Indian motorcycle enthusiast who had been bereft of options for so long might see a flurry of motorcycles in the 250cc category regarded as one of the most potential bike segment in India. While there is buzz in the market about the impending launch of Honda’s CBR 250R, now it has been reported that the Korean bike brand Hyosung 250cc performance and cruiser bikes will be launched next year for under Rs 200,000 each, to compete directly against CBR 250R and the Kawasaki Ninja 250R.

It is not the first time for Hyosung though as the one of the popular but few in numbers Comet, a 250cc motorcycle which was launched by Kinetic Motors before being shelved, which is being remembered fondly by the motorcycle enthusiasts. Now Hysoung is on its second innings and the Pune based Garware Motors is presently setting up a completely-knocked down (CKD) assembly facility in India for importing two models, the ST7 and GT 650R from Hyosung. Garware is spending Rs 20 crore towards the CKD facility being built at Wai in Maharashtra. It has acquired 25 acres, which can be used for expansion

According to a report in Business Standard, Diya Garware Ibanez, managing director, Garware Motors was quoted as saying “We are discussing with SNT Motors (owners of the Hyosung) to see how the volumes work out for our two models. We will follow the launch with the naked version of the GT 650R later in the year, followed by the 250cc models next year. With regard to pricing of the 250cc, we have to be right up there with the best selling models like the (Honda) CBR 250. Other models of Hyosung could also follow, as there is a big portfolio of models to choose from.”

The report stated that Garware will open bookings for the ST7, priced at Rs 600,000, and the GT 650R, priced at Rs 550,000, on April 21, with deliveries to start by May end. The company will accept bookings at 10 dealerships which will be opened shortly, followed by an additional 10 outlets to be opened later in the year. It was also mentioned that although engines, transmissions and gearboxes for the Hyonsung bikes will initially be imported into the country from Korea due to the low volumes projected during the first year, they may get locally made in due course if demand improves substantially.

Since there is some big buzz around performance motorcycles now, the bikes are expected to sell in good numbers. The report mentioned that Garware is expecting sales of around 2,000 units of the two models in the first year.”We may have to go in for local production of engines to benefit from the lower tax duty if there are enough volumes supporting it,” stated Ibanez. But now since the company is going for the CKD route, the revised rules of the finance ministry that all imports of pre-assembled engines, transmissions and gearboxes will have to pay a customs duty of 30 per cent as against 10 per cent levied last year will be a bit of a burden.

Garware is also looking at neighboring markets too and the report stated that the company is in talks with distributors of Nepal, Sri Lanka and Bangladesh for sales of Hyosung bikes. Hyosung had recently appointed a distributor in Nepal, which is keen on procuring the bikes from Garware due to lower duties.

Honda to launch 100 cc bike segment

 

Following its exit from Hero Honda, Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) on Monday said it would launch a range of motorcycles, including that in the mass segment of 100cc, to grab leadership position in the Indian two-wheeler market. HMSI also unveiled its global ‘road-sport' bike ‘CBR 250R', which will be launched next month.

Mass models

“Our target in the next decade is to be No.1 in India. For the first time, we will introduce a mass segment motorcycle in the 100cc category…it is the first priority for us,” HMSI President and CEO Shinji Aoyama told journalists here. “We have not been entering the mass segment because of existence of Hero Honda (its erstwhile joint venture partner). But now for a while, we will concentrate on introducing mass models. We will introduce the 100cc bike in next year...it is currently under development,” he said.

New CEO

HMSI will be strengthening its R&D in India and start developing specific products for the country, besides considering setting up a third plant. “We will start operating our second plant at Tapukara in Rajasthan by July-August, which will take our total annual production to 22-lakh units,” said Mr. Aoyama, who will be leaving India after a four-year stint to join the parent Honda Motor Co. He will be succeeded by Keita Muramatsu on April 1.

Sales target

Mr. Aoyama said HMSI was expecting to sell a total of 16.5-lakh units in 2010-11, a jump of 30 per cent over the last fiscal, while it was aiming for an increase of over 27 per cent in its sales to 21-lakh units in 2011-12. The Indian two-wheeler market is likely to be 1.2 crore units in this fiscal.

Referring to HMSI's global ‘road-sport' bike ‘CBR 250R', which will be launched next month, he said it would mark the company's entry in the high performance 250cc segment. The bike will available in two versions — standard variant priced at Rs.1.43-lakh and C-ABS variant priced at Rs.1.68-lakh.

Bambikes — bicycles with bamboo parts

 

While other kids were having a good time during the summer holidays, Vijay Sharma helped his father, a carpenter, in his workshop to help supplement the family income. But little did he know that the skills his father taught him would one day help make him famous as one of the few people in India who handcraft Bambikes — bicycles with bamboo parts.

Cycling is an eco-friendly way of getting around — no fuel is consumed and there are no harmful emissions. Sharma has scaled up the bicycle's eco-friendly quotient by using bamboo to make the cycle frame, which is usually made of steel, aluminium or titanium. But he is quick to add that other parts such as chains and brakes are made of metal, and the tyres from rubber. “The idea is to replace as many materials with bamboo as possible — for parts such as the handles, basket and so on,” he explains.

So, why bamboo? “Bamboo is comparable to steel in terms of strength; in fact, in North-East India, people use bamboo to build houses that last decades. Bamboo is inherently shock-absorbent and flexible too, all qualities essential for a bike,” he says.

Mauro Vanoli, an Italian cycling professional, says he learnt about Sharma's Bambike on the Internet. Vanoli travelled to Bangalore and got a Bambike custom-made for himself. He now displays the Bambike at major travel trade fairs and bike shops in Europe, and says people are excited about the product. “I've done television and magazine interviews on the Bambike, and invitations are coming in from other media organisations. The bike is booked for exhibitions and shows till May,” he says.

Carpentry to bike designing

Sharma became interested in bicycle-making after he enrolled for the ‘MAD bicycle workshop' at the Centre for Environmental Planning and Technology, Ahmedabad, where he was studying interior designing. Here, bicycles were dismantled and the parts reused to make everything from toys to tandems (bicycles for multiple riders). Sharma used this opportunity to design a recumbent (reclining) bike.

“Although I am a qualified interior designer, I like to get my hands dirty,” he laughs. But getting that qualification was no easy ride for this innovator, who had his early education in Gujarati medium. “I took eight years to complete a five-year degree in interior designing because my English wasn't too good and I had trouble writing my thesis. But with the help of some friends, I did it,” he says.

After setting up a furniture workshop in Bangalore, he began making all kinds of cycles — including tricycles and recumbent trikes — as a hobby. He started working on the Bambike after a friend suggested it. The challenge lay in putting together the bamboo frame — with steel or aluminium, you just weld the frame together — and Sharma found his solution in fibreglass, which is used to provide the joint between two lengths of bamboo.

Fame on Nilgiris

Arun Katiyar, who was involved with organising a cycling ‘Tour of the Nilgiris', heard of Sharma's bike-making abilities in 2009 when he was moving into his new house in Bangalore. “The man who fabricated my dining table worked in Vijay's workshop.” Katiyar was at the time trying to organise a meeting between people who built bikes and bikers. So he paid Sharma a visit and saw him working on the Bambike at his workshop.

“It was a very hip bicycle; you could ride it alright, although it swayed at the back. Its corners were bumpy, the bamboo wasn't rigid enough and, finally, borers had made holes in the bamboo since it was not treated then,” Katiyar recalls. But this was just Sharma's first try, and convinced of the Bambike's potential, Katiyar asked him to work on a racing Bambike for that year's Tour of the Nilgiris. As things turned out, the Bambike led the tour, with Sharma riding it.

That tour fetched him wide publicity, and he says his most memorable moment was when his parents called to say they saw his interview on TV. It was also at the tour that he met the President of TI cycles, the Chennai-based manufacturer of BSA cycles, who offered to get his bike scientifically tested. The Bambike passed the Japanese Industrial Standard (JIS) test, making it roadworthy on a flat, tarred surface. Sharma is now working to make the Bambike suitable for Indian conditions.

A major challenge facing Sharma in the manufacturing process is the absence of a standardised raw material; the naturally occurring bamboo can never have a uniform wall thickness and diameter, so the weight of the bike will also differ across products. But Sharma guarantees that the Bambike will last just as long as a regular bike, “unless you meet with a bad accident, of course.”  Salam Hidish, a furniture designer, says he likes to ride the Bambike because “it has a nice cushioning on a bumpy road and I find it much lighter than a regular bike.”

For enthusiasts and the rest

The price of the Bambike, however, may prove a major deterrent for potential buyers in India. Sharma's Bambikes start from Rs 25,000 for a hybrid bike, while a mountain terrain one costs Rs 30,000. These are, after all, handcrafted products that require considerable time and skill. “Bike companies make 4,000 bikes a day. I take 20 days to make one bike,” he says.

While the bike currently has few takers back home, as “people in India view bamboo as a poor man's timber, even though it's as strong as steel”, enquiries are pouring in from Copenhagen and Italy. As Katiyar says, “People in the West want to own a Bambike — it's a matter of social status to own a handcrafted, eco-friendly bike.” Abroad, bamboo bicycle designers sell the frames alone for $1,000-3,000.

The Bambike definitely cannot replace the latest models of hi-power bikes, but as Vanoli says, “it could create a niche for those who wish to have an exclusive and special ride.” Stressing on the need to bring this eco-friendly transport within the reach of ordinary Indians, Katiyar says, “It is not a bike built for India and it is not a model meant for the masses. What we need is a bamboo bicycle that everyone can afford. It's a question of evolution. The paperwala has to come on a bamboo bicycle.”

TVS aims to design India's cheapest motorcycle

The country’s third largest two-wheeler manufacturer, TVS Motors, is mulling a low-priced motorcycle to shore up volumes in the Indian market. The product, when introduced, would be the cheapest motorcycle in the country. TVS Motors, which currently manufactures mopeds, scooters and motorcycles for the domestic market, is considering a new product to bridge the price gap between the company’s range of mopeds and motorcycles.

“There is room for introducing one more product at the lower end of the motorcycle segment. Our cheapest motorcycle comes for Rs 36,000 while the most expensive moped is tagged Rs 25,000. There might be a new product positioned in this range,” said H S Goindi, president (marketing). He, however, admitted it would be a challenge to make a profitable product in the segment at such aggressive price points. “The Indian market is demanding, the quality of motorcycles on offer here is very high in terms of finish, engine performance, styling and fuel efficiency. The challenge would be to offer good features at competitive price points,” he said.

Industry experts note the 100-110cc segment account for 60 per cent of the nine million motorcycles sold every year and is the mainstay of companies like Hero Honda and TVS Motors. To launch inexpensive products in the category is, therefore, critical for two-wheeler companies in the country. Honda Motor Corporation (HMC), which too is working on a low-cost bike priced at around $ 600 for sale in emerging economies, has decided against introducing the product in the Indian market. Shinji Aoyama, president and chief executive officer, Honda Motorcycle and Scooter India (HMSI) had earlier said, “The low-cost bike is not suited for the current requirements in the market here. At present, we are not considering launching the product in India.”

The motorcycle is being developed at the company’s research and development centre in China, mainly for markets in Africa. TVS Motors, at present, is working on developing two new motorcycles which are likely to hit the Indian roads in the course of 2011-12. Goindi informed, “We are working on two products. It would take us another eight to nine months to launch these motorcycles commercially in the market.” He, however, declined to share details about the segments which the products would be launched in.

Additionally, the company is also firming plans to re-launch products in the electric scooters segment. TVS Motors has developed an electric variant of Scooty Teenz and a new scooter, which are being tested in 50 towns across the country. Depending on the feedback received a commercial launch would be made in the coming financial year. TVS Motors, which is the third largest two-wheeler manufacturer in the country, has sold 1.6 million units in the domestic market between April and February this financial year, registering a growth of 31 per cent as compared to the corresponding period the previous year.