The Country’s largest scooter manufacturer, Honda Motorcyles and Scooters India (HMSI), will completely exit the geared scooter segment and will phase out the Eterno soon.
“There is not much demand for geared scooters in the country anymore and we are selling only 40,000 units per annum of the Eterno now,” said Shinji Aoyama, president and CEO, HMSI. “This is very low by our standards and we plan to phase out the model very soon.”
The company on Friday launched a new-look 110cc Activa, the largest selling scooter in the country. Honda outpaced the industry, growing at 17 per cent this financial year and is tipped to end the year with sales of 10.6 lakh units.
“There was some impact of the global economic downturn and finance crunch on the industry but in the bigger picture it was negligible,” said NK Rattan, head sales and marketing, HMSI.
Honda admitted that there will be some impact of the Nano on the two wheeler industry but maintained that there is no direct competition.
“I don’t deny the fact that Nano will have an impact. But though the initial cost has come down the riding cost of a two wheeler remains very low especially with new technology which improves fuel efficiency,” Aoyama said.