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125 cc bikes may outpace others in mid segment

125 cc bikes may outpace others in mid segment

Author | Source: Business Standard | Wednesday, Apr 05,2006 12:47 PM

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125 cc bikes may outpace others in mid segment

125 cc bikes control a market share of 18 per cent of total motor cycle market.

Auto analysts in the country feel that 125 cc variants of the executive segment (middle segment) bikes will outnumber their 100/110 cc counterparts in the segment in over one-and-a-half years.

At present, 70,000 bikes are sold in 125 cc segment compared with 2.4 lakh bikes in the 100/110 cc (executive segment) in a month. However, the trend is likely to reverse in the near future.

Improved fuel economy from 125 cc bikes compared with their 100 cc counterparts, diminishing price differential between the two segments and more variety as a result of entry of new players would be the key factors that would drive the 125 cc segment ahead of 100 cc bikes.

“Today a Super Splendour (125 cc) offers better mileage compared with Passion plus (100 cc),” said PS Sunder, general manager, (Marketing), Hero Honda.

The 125 cc executive segment bikes are priced at Rs 44-49,000 compared with their 100 cc counterparts at Rs 41-43,000.

Super Splendor, Glamour, Discover (125), Prima, and Victor GLX are major names in the 125 cc executive segment. Splendor, Passion Plus, Discover (112), LML Freedom (110) and Victor GX (110) are the bikes in the 100/110 cc segment.

“In about three years after its entry, 125 cc bikes control a market share of 18 per cent of the total motor cycle market in the country. The segment has potential to beat the 100cc/110 cc bikes in volumes,” said KS Grihapati, general manager, (Marketing), Bajaj Auto.

Understanding the trend, Honda Motor Cycles and Scooters India (HMSI) and Suzuki have decided to give more focus on 125 cc segment.

Honda, recently launched its executive 125 cc variant, Shine, priced at Rs 45-47,000. The company has plans to launch one more 125 cc bike and another 100 cc bike.

“125 cc would be our focus area as we do feel that the segment would outnumber the 100 cc segment in volumes by 2008 when more 125 cc models would have entered the Indian market,” said senior officials in HMSI.

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