Honda Motor challenges Bajaj with the Unicorn

Our Corporate Bureau
09 September 2004

New Delhi: Honda Motor and Scooters India (HMSI) has launched its first motorcycle in India — the four stroke 150cc Unicorn, priced at Rs53,000.

Targeted at the young, Unicorn is said to be sportier than the Bajaj Pulsar. Unicorn is a 13.3 bhp, four-stroke, five-gear (one down and four up) bike with a monocoque suspension system and an electric start option. The single shock absorber is in line with international norms. Sources said Honda is bringing in this bike with a constant vacuum (CV) carburettor to ensure mileage in excess of 60 kilometres to a litre of petrol.

Unicorn has been pitted against Bajaj Pulsar the current leader in the premium bike segment with 75 per cent market share. The other bikes in this segment apart from Pulsar are TVS' Fiero, LML's Graptor and Hero Honda's CBZ.

HMSI is targeting sales of 56,000 units of Unicorn this fiscal, and total sales of 530,000 units, 56 per cent higher than the previous year's sales of 340,000 units.

Honda Motor is also expanding capacity at its Manesar plant to 600,000 units from the present 450,000 units by next year. The company has announced plans to invest Rs500 crore to increase capacity over the next three to five years. The company has drawn up plans to increase its capacity to one million units by 2006-07.

HMSI executives said that along with Hero Honda the Japanese company aims to capture a market share of 50 per cent of the Indian two-wheeler market in the next five years. Market watchers expect HMSI to follow up the Unicorn with a 135cc bike next year.