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The secret behind Hero Honda's success
Challenges ahead
Sector experts say the going could get tough for Hero Honda in the days to come as Honda has launched its 100 cc motorcycle in India.
Bajaj Auto too is learnt to be working on a slew of new models to take on the market leader. And then there is the Tata Nano which could take some customers away from two-wheelers. Munjal appears unperturbed. "The Nano will not impact two-wheelers. You need to look at the total cost of ownership - installments, cost of fuel, maintenance, service, insurance, parking and road tax," says he.
"The new Honda motorcycle doesn't come as a surprise to us just like the Honda scooter didn't come as a surprise. There will be one more motorcycle in the market." Still, Hero Honda is not taking any chances. Munjal has tasked his engineers to come out with a low-cost motorcycle, one that combines the price of a moped and the performance of a motorcycle, through value engineering and tax planning.
Knocking a couple of thousand rupees from the current price points (Hero Honda's cheapest bike currently costs around Rs 31,000) will not help. The price target could be well below Rs 25,000. Could Chinese parts be an option? "I wish we can do it here itself and there is no need to go to China," says Munjal. Powered by 
Image: Bajaj XCD 135 cc
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