Honda Motor Co., the world’s largest motorcycle maker, will introduce a new motorbike that may be its cheapest to raise sales in emerging markets among rising competition from Chinese and Indian rivals.Honda will build and sell the motorbike for as little as 4,000 yuan ($599) in China starting next year and also introduce it in Nigeria and Latin America. The company will compete with Chinese and Indian motorcycle makers, targeting low-income customers in developing countries.
Currently, the company’s cheapest motorcycle in China is the 100cc Wave that retails for 4,600 yuan, while in India the 36,350-rupee ($817) 97cc CD-Dawn is its lowest priced model. Honda’s most expensive offering is the 1,800cc Gold Wing that sells for 3.68 million yen ($44,370) in Japan.
Honda Motor Co., needs to look for growth from emerging economies, since the unit sales plunged 41 percent in North America last fiscal year. In India, Honda is expanding an existing motorcycle plant and building a new plant to add 2.2 million units of capacity next year in India.
For a long term, profits from emerging markets will become a main source of motorcycle makers' incomes, as developed countries struggle from economic woes.
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