Reference Auto

Japanese auto major Honda, which was the highest seller of bikes in India (when it was in a tie-up with the Hero group), has turned price sensitive again with the company launching a motorcycle for the masses (the cheapest bike in India), the Dream Neo, for Rs 43,150, in a bid to reestablish itself after breaking away from the Hero Honda brand.

Honda has realised that after breaking away from the Hero Honda brand, it can only go solo in India after it reaches out to the people and the right way of doing so is by launching a budget bike.

This new Dream series bike has been made keeping Indian conditions in mind and is powered by a 110 cc engine, and according to the company, it can give a fuel economy of 74 km for every litre of petrol.

Propelling the Dream Neo is the identical 109 cc engine on the Dream Yuga but this engine has been de-tuned a bit for better efficiency. It produces 8.4 PS of power and 8.63 Nm torque.

The new motorcycle also comes with Honda’s patented Honda Eco Technology or HET update, which helps in reducing friction among parts. This technology helps improve combustion and gives a cleaner spark owing to a Nickel-plated spark plug and optimised inlet ports.

To rev up agility, Honda has raised the wheelbase to 1,258 mm and equipped the Neo with a five-step adjustable suspension. The Dream Neo also offers features like viscous air filter, tubeless tyres and is maintenance free.

Honda also has the cheapest scooter in the country, the Dio, which comes for Rs 44,718.

“The Dream Neo is Honda’s next big leap in creating deep inroads into the Indian commuter market,” Honda Motorcycle and Scooter India's president and CEO Keita Muramatsu averred.

He revealed that riding on the new products, the company plans an ambitious 150 per cent growth in the 100-110 cc segment.

The Dream series also has the Yuga, which was till recently the cheapest bike in India priced around Rs 46,000. So, by introducing cheaper bikes, Honda would surely make a big splash in the mass market and scale up numbers like never before in a price-sensitive market such as India.

This plan would also help Honda make India the hub for manufacturing low-cost two wheelers and export them to developing nations such as the ones in Latin America, ramping up volumes like never before.

So, Honda (which is known to produce arguably the best bikes in India) plans to get a further foothold in the country and would surely get a leg up if it continues rolling out budget two-wheelers and see its sales surge to a new (and unprecedented) high in the Indian market.