Hero Honda says 2 wheels will score over cheap 4s

Allaying concerns over competition from low-cost cars, Hero Honda Motors Ltd chairman Brijmohan Lall Munjal on Tuesday said two-wheelers would remain the vehicle of choice in the country.Munjal was addressing shareholders at the company’s 26th annual general meeting here.

“Your company is well aware about the anticipation over low-cost cars. These will be good for India. Nevertheless, there is little doubt that two-wheelers would continue to remain the vehicle of choice in India,” he said at the meeting.

There has been speculation that the advent of low-cost cars would wean away two-wheeler customers on the price point. Earlier this year, Tata Motors launched its Rs 1 lakh car Nano. Compared with that price point, most premium segment motorcycles are priced at around Rs 65,000.

“Low running costs, easy navigability and low maintenance costs ensure that two-wheelers outsell cars. These factors would continue to drive sales in the coming decades as well,” said Munjal.

Sensing an opportunity after the launch of Nano, many international automobile companies have evinced interest in developing such low-cost cars.France’s Renault is already developing a low-cost car with Bajaj Auto Ltd.

Separately, Munjal said the domestic two-wheeler industry would become much more competitive over the next 12 months.“There would be more competition on price, technology and models,” he said.