Honda has recently launched the Highness CB350 neo-classic motorcycle at a starting price of Rs 1.85 lakh. This new motorcycle is designed and developed for the Indian market with close to 90 per cent of local components. A new report claims that Hero MotoCorp and Bajaj are also eyeing the 300cc and above segment, which is currently dominated by Royal Enfield.
The report claims that Royal Enfield registered more than 30 per cent operating margin till FY18, which shows that the brand is enjoying high profit margins on its products. The company is currently dominating the segment with 97 per cent shares.
We reported earlier that Bajaj-Triumph JV is also ready to enter the affordable cruiser motorcycle segment. Bajaj Auto and Triumph Motorcycles joined hands in 2019 to form a non-equity JV to manufacture 300-700cc motorcycles, which are expected to be launched in 2021-22. The British two-wheeler maker Triumph is looking to use Bajaj’s vast supply chain ecosystem and large scale manufacturing of small bikes to keep cost of operations and prices of the vehicles down.
Hero MotoCorp is also developing a wide range of mid-sized motorcycles to expand its product line-up of premium bikes. Hero is likely to launch an all-new 300cc motorcycle, which could join the XPulse line-up. The company could also introduce an all-new neo-classic motorcycle to rival the likes of the RE Classic, Jawa and Honda CB350.
Honda is also expanding the CB350 neo-classic range, as the Japanese brand could introduce a cafe racer or a cruiser bike based on the same platform. The CB350 is powered by a 348.36cc, single-cylinder air-cooled engine paired to a 5-speed gearbox. This engine produces 20.7bhp of power at 5,500rpm and a peak torque of 30Nm at 3,000rpm.
