New Delhi - World's largest two-wheeler maker Honda Motor Company plans to bring its high-end all terrain vehicles (ATV) to India to cash in on the rising demand for such vehicles.
ATV sales in India are around 1,200 units annually. ATVs cost in excess of Rs 8-13 lakh for a single-seater, while the bigger vehicles that can seat four to six people are sold at Rs 28 lakh, a price a luxury sedan would command.
Honda has been a dominant player in the two-wheeler space in India, cornering over 60 percent of the market share along with its erstwhile partner, Hero Moto-Corp. The Japanese auto major is the second largest player in the global ATV market after American company Polaris, which has a presence in India, through a wholly-owned subsidiary.
"There has been strong growth in the past two years, with consistent demand coming from individuals, hospitality sector, adventure parks and off-roading enthusiasts. Honda is keen to foray with its high-end products and leverage its brand strength in the Indian market," said a person close to the development.
An e-mail sent to Honda Motor Company remained unanswered, though sources in its Indian operations confirmed that market research on ATV potential in India has been positive.
ATVs are compact and open motor vehicles fitted with large treaded tyres, used primarily for off-road expeditions or for adventure rides on rough terrain. Polaris Industries, which launched its ATV business in the country in 2011, largely created the market in India.
Currently operating through a wide network of 25 outlets, it has tied up with Eicher Motor for a local manufacturing that would help it avoid 100 percent duty on imports. "The market is currently at a nascent stage, but the need to mechanise in the difficult terrains across India is fueling the demand," says Pankaj Dubey, MD, Polaris India.
