Honda introduces cheapest motorcycle in the world

Honda Motor Company introduced the Dream Yuga, its second entry-level motorcycle in India. The new motorcycle is also the cheapest globally, and with its introduction, Honda hopes to unseat Hero Motocorp Ltd. as the industry leader. The new model, which sells at Rs44,642 (US$830) in New Delhi showrooms, will strengthen the company’s presence in the volume-driven segment. “India is very important for us. We expect India’s share in the global two-wheeler revenue of Honda Japan to grow to 30% by 2020 from about 13% now,” said Keita Muramatsu, chief executive of Honda Motorcycle & Scooter India. Muramatsu said Honda expects to sell 300,000 units of the Dream Yuga in the current financial year which started on April 1. Honda has two factories in India: one at Manesar in northern Haryana state and another in Tapukara in northwestern Rajasthan state. The two plants have a combined capacity of 2.8 million two-wheelers a year. The company is building a third factory near Bangalore in southern Karnataka state, which will begin operations in the first half of 2013. (May 15, 2012)