hen Hero Honda Motors (HHM) announced its plans to enter the scooter market in India sometime back, it raised many eyebrows. For one, HHM is a comfortable leader in the motorcycle market, which has left the scooter market far behind in the two-wheeler race. (According to SIAM reports, the motorcycle segment makes up about 77.5 per cent of the two-wheeler sales, while scooters make up about 16.5 per cent of the two-wheeler sales in India currently). For another, HHM�s JV partner, Honda Motor Company, already has a strong presence in the scooter market through the 100 per cent subsidiary, Honda Motorcycle and Scooter India (HMS), it set up in 2001.

Up against the might of Honda - and of course, the alacrity of Bajaj and Kinetic - will HHM be able to fructify its plans? ... more