Honda India is gearing up to launch a new 100cc motorcycle in India, and in preparation for that, the company has begun taking steps to ramp up its dealer and service network across the country. The bike is expected to go on sale in 2023, and since it is a mass market motorcycle, establishing a wide dealer network and touchpoints are essential. 

• New mass market product in the works
• Built to target Hero MotoCorp’s market share
• New dealerships and service centers being set up

According to a filing with the Registrar of Companies, HMSI had increased the number of its certified main dealers (AMD) to 1,025 in FY22 (April 2021-March 2022) by opening 11 new locations in both urban and rural areas. It has established 119 additional associate dealers, 10 Best Deal outlets, and 239 approved service centres during the reported period, bringing the overall footprint to 5,246 touchpoints at the end of FY22.

This dealership expansion is going to play an important role in Honda’s quest to pose a serious challenge to Hero MotoCorp’s dominance in the 100-110cc commuter motorcycle market. While Honda is a leader in the 125cc motorcycle segment with over a 50 percent share, Honda Motorcycle will be banking on the new 100cc model and expanded network to bring in the additional volumes to inch closer to its rival Hero MotoCorp.

In fact, in the month of September, Honda Motorcycle & Scooter India had registered sales of 2.85 lakh units surpassing Hero MotoCorp's 2.51 lakh units as the largest two-wheeler retailer for the month.

By the end of September, the gap between Hero MotoCorp and Honda Motorcycle & Scooter India stood at four lakh units. Hero MotoCorp had sold about 2.7 million vehicles in the first six months of this financial year and the Japanese two-wheeler major had dispatched 2.3 million vehicles.