PUNE, December 20: Bucking overall recessionary trends in the market, motorcycles from the Hero Honda stables have already bettered their last year's performance in the Western region, the backyard of two-wheeler giant Bajaj Auto. Hero Honda's motorcycle sale is expected to cross the one-lakh mark by the end of this year.

The western region, comprising Maharashtra, Gujarat and Goa, has emerged as the biggest markets for Hero Honda. Last year, close to 75,000 vehicles were sold in this market. This year, the company crossed the 75,000-mark within the first eight months itself.

By the end of this year, a 50 per cent increase is expected. Hero Honda has bypassed the slowdown in the automobile industry with dealers in the region even boasting of a two-month waiting period for motorcycles, especially the `Splendour' model, which is the most popular of the Hero Honda motorcycles.

Apart from the impressive performance of Splendour, Sleek, CD SS and CD 100, the company is also beginning to taste success with its latest model `Street 100'.

Positioned as a motorcycle, the 100 cc four-stroke engine Street is being sold as a bike designed for congested traffic riding. The USP: automotic in-built clutches and rotary gears which make it possible to move from the fourth gear directly to the neutral position. Being a step-through motorcycle, it is easy to mount and the company is targeting women and the family segment.

Launched in February this year in the Western region, the Street initially failed to lure customers as it was perceived as an expensive vehicle. Deepak Mokashi, assistant general manager (sales) of western region, says, "There was customer resistance as the Street 100 did not look like a traditional motorcycle though it was priced similary to the motorcycle.

"The closest competitor in the segment is the Bajaj M-80, which is priced less by Rs 15,000 to Rs 20,000, being lower-powered. In a bid to woo customers, the company cut prices of the Street from Rs 39,000 to Rs 35,000 for the standard kickstart model and from Rs 42,000 to Rs 40,000 for the deluxe push-button start model.

The strategy seems to have worked. "Following reduction in prices, the Street 100 model sales have picked up and is selling close to 1,800 vehicles per month in the Western region and 4,500 motorcycles all over the country," Mokashi says. The company is looking at a sales figure of 50,000 units by the end of the first year.

Apart from the strategy of cutting prices, what has also lent an extra appeal to the product is the campaign which stresses on the Street 100 family of motorcycles being the choice of 2.5 crore people worldwide, giving it an international flavour.The success of Street will ensure that Hero Honda stays on the top in the motorcycle segment with nearly 40 per cent market share. Also, it might mean trouble for the M-80 brand motorcycle of Bajaj Auto, which has been performing well in the rural markets.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.