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As Bharat Stage VI (BS-VI) implements in India, it will surge the prices of all two-wheelers but the affordable motorcycle segment will probably be majorly affected, enabling them unaffordable for a huge section of the purchasers.
To comply with BS-VI emission standards is compulsory for two-wheeler manufacturers after April 1, 2020, and making this implemented will involve diffusion of money in fuel injection (EFI) technology and will revise the exhaust system for all two-wheeler makers.
As expected the average price surge in two-wheelers will be Rs 5,000-10,000 after BS-VI implementation which can reflect in the form of 10 percent of the vehicle’s cost, as estimated. Now, the majority of two-wheelers have carburetors whereas some come equipped with EFI technology.
Affordable bike range covers the starting price of Rs. 33,000 up to the limit of Rs 55,000. They generally operate on 100cc or 110cc single cylinder engines enabled by carburetors. Hero Motocorp is the leader of the affordable bike segments as it has Passion, Splendor, and HF Deluxe variants.
Minoru Kato, president and CEO, Honda Motorcycle and Scooter India said in a statement, "Technically we can do it but to keep it affordable is our biggest challenge. It depends on supplier and factories. It won’t kill the 100cc segment. 125cc also will increase because of BS-VI. The 100cc segment will continue but only for a segment of buyers.”
It is a factor behind Honda announced to move slowly in the manufacturing of new motorcycles owning 100-110cc engine because it firms the focus on scooters and executive commuter bikes which come with the 125cc engine where it is a better performer.
Honda, which has the leverage to use its parent company’s technologies together with BS-VI, has not showcased new two-wheeler products in the affordable segment since few months. Quickly moving scooterisation segment in rural areas is also the reason for Honda to stand back from the inferior margin affordable bike department.
As per the information shared by a Society of Indian Automobile Manufacturers (SIAM), Hero Motocorp occupies 74 percent of the affordable bike segment by the end of the month. In a set of four motorcycles, three are affordable bikes which are sold by the company.
In FY17, the affordable bike segment just slowed down by 3 percent near to 6.48 million units with respect to 6.66 million sold out in Fy16. In April-October period, this department displayed a hike in sales by 7 percent to 4.48 million units in relation to enhancing levels of expenses in a rural market.
Eric Vas, President of Bajaj Auto (motorcycle business) said focusing the BS-VI compliant bikes, “Our R&D chief has said that he would be able to give us BS-VI on our full range including 100cc bikes. We are able to move quickly to new technologies such as BS-VI and ABS because geographically we are so spread out and there are some markets.”
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