Honda expands commuter bike stable with 109cc Dream Neo

New Delhi, April 17, 2013: In line with the news story that Autocar Professional broke yesterday, Honda Motorcycle & Scooter India (HMSI) has taken the covers off its second model in the Dream series of mass motorcycles – the 109cc Dream Neo.

With this model, HMSI has expanded its commuter motorcycle range. The Dream Neo will slot in under the Dream Yuga and the more upmarket CB Twister. The Dream Neo is powered by a carburettor-fed, four-stroke, single-cylinder, 109cc engine which develops 8.25bhp at 7500rpm and 0.85kgm of torque. It has a four-speed gearbox.

Like most commuter bikes, it banks on fuel efficiency and is claimed to deliver 74 kilometres per litre, which makes it Honda’s most fuel-efficient two-wheeler in India. It is the first motorcycle from HMSI’s stable to use Honda Eco Technology (HET). HET was first showcased on HMSI’s revised scooter range (Activa, Aviator and Dio), which rolled out earlier this year. It is claimed to deliver 11 percent more fuel efficiency and 60kpl on the three scooters. HET incorporates improved combustion, a cleaner spark thanks to a nickel-plated spark plug and optimised inlet ports. HET also uses lower tension piston rings, improved oil seals and lighter engine components to reduce friction. The Dream Neo’s pricing starts at Rs 43,150 (ex-showroom, Delhi) which puts it at par with commuter bike rivals like the Hero Passion X Pro, Suzuki Hayate, TVS Star City 110 and Mahindra Pantero. The top-end Dream Neo is priced at Rs 47,240.

The 100-110cc commuter bike segment constitutes nearly 50 percent of the entire Indian two-wheeler market and HMSI is all too eager to grow its market share in this category. This segment, which like others has taken a hit due to the slowdown, saw total industry sales of 6,486,617 units in 2012-13 (down 1.87 percent/ 2011-12: 6,609,938) . In the last fiscal, HMSI’s Dream Yuga and CB Twister sales comprised 319,197 units, the company notching a growth of 124.67 percent (2011-12: 142,075). Clearly, the company sees the commuter segment as the fastest way to grow its market share in the country.

Speaking about Honda’s strategic direction in India, Keita Muramatsu, president and CEO, HMSI, said: “The Dream Neo is Honda’s next big leap towards making deep inroads into the Indian commuter bike segment. Our newly opened Technical Centre (in Manesar), which comprises R&D, Engineering, Purchase and Quality teams, overcame the challenge of improving mileage and meeting the competitive price point. Backed by our new product launches and network expansion, Honda aims to grow over 150 percent in the 100-110cc motorcycle segment, year on year. We are eyeing a 43 percent growth with sales of 39.3 lakh units in FY’14.”

On a Dream run

The Dream Yuga has been a hugely successful product for HMSI and currently has a market share of around 5 percent in the mass commuter segment. Within a year of its launch on May 15, 2012, it has clocked sales of over 300,000 units. HMSI has had a good run in 2012-13. During the year, it sold 2.75 million two-wheelers, a 31 percent growth over the previous year. That helped the Japanese OEM capture an 18.89 percent share of the Indian two-wheeler market. Its motorcycle sales grew higher on a lower base than scooters. HMSI sold 1.29 million motorcycles, which is a 49 percent growth over the previous year. Its scooter sales rose 18 percent year-on-year with total sales of 1.46 million units. Earlier this year, HMSI had made clear its ambition of being the No. 1 in the Indian two-wheeler market by 2015-16. The cutting-edge Technical Centre will play a key role in the company’s ambitious target and will help expedite new product development programmes for India. In January, HMSI had said that HET will be leveraged to develop four new models, one of which was to be a 100-110cc model priced lower than the Dream Yuga. The new Dream Neo is that model. Autocar Professional told you so . . . yesterday.

SHOBHA MATHUR