HMSI's Dream Yuga commuter bike rolls out, faces stiff competition

June 19, 2012: Following up on the launch of its 110cc commuter bike the Dream Yuga in New Delhi on May 15, Honda Motorcycle & Scooter India (HMSI) launched the bike in Mumbai at an ex-showroom price of Rs 48,028. The bike is available in three variants – kick/drum/spoke, kick/drum/alloy and self/drum/alloy – and five colours.

The Dream Yuga, which develops 8.5bhp and a claimed 72 kilometres per litre, is Honda’s latest salvo at the mass market, aiming to achieve what its earlier commuter bike, the 110cc CB Twister launched in December 2009 did not. The Twister with its aggressive styling (for the time), better power-to-weight ratio and decent pricing was expected to draw fuel economy conscious commuter bike buyers in droves. However, the Twister’s sales did not take off in a big way.

The new Dream Yuga is part of HMSI’s bigger India gameplan and aims to take on the market leader, Hero, on its own turf. The company’s new three-pronged strategy opens with commuter bikes, and then takes on an association with brand ambassador actor Akshay Kumar to promote the product as well as strike a direct connect with the masses with the new brand slogan ‘Sach Kar Denge Sapne’.

Honda, which expects its scooter and motorcycle portfolio to contribute equally by 2020, clearly has a plan in place for the Dream Yuga with which it aims to tap the majority 78 percent market in the lower commuter segment, focusing on the 25 to 29-year age group in the B- and C-income groups in the semi-urban and urban markets. The 100 and 110cc market for two-wheelers constitutes 50 percent of the total that is followed by automatic scooters.



One for the masses

The Dream Yuga’s engine is equipped with the Honda Intelligent Ignition Control System which changes ignition timings to attain ideal combustion, leading to improved power output and efficiency. To facilitate daily commuting are its long seat, full gear lever and full chain case. Tubeless tyres and Tuff up tube options, viscous air filter and maintenance-free battery enable increased durability.

2012 is a significant year for HMSI when Honda is marking its solo presence in the country, hence its new corporate direction. It will also expand its dealerships by 100 this year and its touch points will be extended to 2,000 from the current 1,500. The Dream Yuga will be produced in the Manesar plant and is also expected to be later exported. HMSI sold 221,540 units in May 2012 (including 4,358 Dream Yugas), a 52 percent increase over sales in May 2011. Its May 2012 sales comprised 95,507 bikes and 126,033 scooters.

The Dream Yuga runs into stiff competition in the commuter bike market, what with the likes of the big-selling Hero MotoCorp’s CD Deluxe, Splendor and Passion and Bajaj Auto’s 94.3cc Discover DTS-i holding sway. And, Suzuki Motorcycle India too has recently entered the fray with its 112.8cc Hayate, which sold 4,358 units in May 2012.

All this means HMSI has its task cut out for the new bike: expand its all-India sales network, drive brand awareness in rural and B- and C-town India and tweak the production capacity, if demand takes off.