Can Honda's Dream Yuga take Hero Moto head on?

Is it as simple as fill it, shut it, forget it?

Honda Motorcycle and Scooter India is gearing up for more launches, and that too with an aim to roll out models with better fuel efficiency.

In an interview in the Business Standard newspaper, Keita Muramatsu,President & CEO, HMSI says: If petrol costs go up by 10 percent, then our mileage should also go up by 10 percent. That is the challenge for Honda.

Muramatsu is clearly spelling out a strategy key to take Hero Motorcorp head on.

On Tuesday, the company, which is third largest two-wheeler maker in India by sales, unveiled a 110-cc entry level bike, the Dream Yuga.

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The entry level segment is dominated by Indian brands such as Hero’s Passion and Splendor, Bajaj’s Discover and TVS’ Star Sports.

Foreign players such as Suzuki, and Honda have also stepped down from their premium pedels, to join the race for a large pie in one of the world’s most growing two-wheeler markets.

Looks like a simple fill-it-shut-it-forget-it strategy is unlikely to work in India any more.