Why Can't Honda Sell India's $900 100cc Street Motorcycle In The USA?
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Right Now You Have To Shell Out Between $3,000 & $6,000 (!) To Ride Away On The Smallest Street Motorcycles!
You have to wonder why GM and Chrysler went under. Could it have anything to do with the fact that they were simply not producing the types of automobiles that the customer wanted? Both manufacturers were total losers when it came to smaller economy models. The Caliber was the most economical offering from Chrysler and it was a rolling pile of dung that looked like an elephant sat on a minivan, performed like a slug on wheels, and was as long lasting as a nitroglycerin milkshake machine. On the GM side, the profoundly repugnant, dated, poorly designed, badly built, underperforming and ridiculously fuel thristy (I have a friend who gets a completely unacceptable 26 mpg on his '09) Korean Daewoo Kalos rebadged as a Chevy Aveo is an embarrassment with a bowtie badge.
Now that we're on the subject of not providing the vehicles that the public wants, let's discuss the various motorcycle manufacturers. These companies are so damned busy carrying on a horsepower and displacement war where gargantuan, Brobdignanian 2.3 litre juggernaut motorcycles that generate 140+ horsepower are considered "sedate cruisers," and you can buy a motorcycle straight off the dealership floor that will comfortably break 200 mph, that they have completely ignored the overwhelming market demand for an affordable, small, easy to handle, "starter bike" for students, commuters, shoppers, and Sunday cruise riders.
There are only four, count them, four street legal motorcycles offered for sale in North America in the 2009 model year that are even as small as 125cc. They are:
2009 Aprilia RS125 - MSRP: $5,499
2009 Honda CBR125R - MSRP: $2,999
2009 Husqvarna SM125 - MSRP: $5,799
2009 Kawasaki Eliminator 125 - MSRP: $2,799
Suzuki, Yamaha, BMW, Harley Davidson, Triumph and other manufacturers are not represented because, obviously, they couldn't give a rodent's derriere about small entry level motorcycles.
These prices are utterly outrageous. It would cost well over $6,000 to ride the Husky out of the dealership once tax, PDI, etc. is tagged on.
Where do "entry level" riders have $6,000 to blow on a starter bike? Where? In Dubai? Brunei? Certainly not in the USA or Canada!
If you shop around you can find brand new 2009 economy cars for $7,999. And the manufacturers are trying to sell "entry level" motorcycles for a couple of grand less?
Completely looney tunes.
That's why I read with special interest that Honda was about to debut a 100cc single cylinder motorcycle in India that would sell for approximately 42,000 rupees. That works out to $882 with the current exchange rate, and as compared to the laughably overpriced small bike dreck that is currently in North American dealers showroom floors, it's the deal of the century!
There is NO excuse to not sell a sub $1,000 100cc Honda single in North America today. It's not like you have to re-engineer a 100cc motorcycle for emissions, crashworthiness, safety standards and all the overbearing standards which stifle importation of low priced automobiles from countries such as India and China. Very minor tweaking of Honda's India 100cc would make it more than suitable for North American sales.
And, yes, there would be sales. Lots of them. North America is ripe for another "You meet the nicest people on a Honda" campaign. A 100cc Honda is the perfect substitute for legs, and at over 100 mpg, would be gobbled up as fast as they could be produced for the North American market.
So, what about it Honda? Are you still going to try to keep foisting inexcusably outrageous hyperbike suicide machines like the Honda CBR1000RR, or two wheeled Krystal Koach limousines like the Gold Wing, or are you going to start listening to your customers who want A NICE, CHEAP, ECONOMICAL, RELIABLE, FUN LITTLE BIKE???
The 100 cc Honda Single was sold in North America in a wide variety of models to suit almost every "entry level" street and even mild off-road rider untl 1975:
Many of the Honda 100 images come from this Vintage Honda site.
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Comments
I too laughed at the colorful and descriptive language. I have to contest though, what kind of car can you get at $8000? Can't be much. I think bikes are somewhat more affordable than a car, but not as practical. There are a lot of scooters that would meet the criteria of a cheap bike. I personally want the power of a larger engine, especially on the freeway, where extra power can get you out of sticky situation, (or into one if you're riding a Ninja death machine).
Americans are willing to pay, and the market is what it's all about. In India, they know people are unwilling to shell out a whole bunch of money, because who knows how many years it takes to save up for an 800 dollar bike. Maybe buy one there and import it? After all is said and done, you will pay the same as for the cheapest bike here. Everyone has to get their share in this rich country we live in, which unfortunately screws those of us who are more frugally minded and less driven by flash. Great article by the way, love your points.
Gypsy Willow: Thanks, I appreciate the kind words! The manufacturers have completely forgotten what got them into the North American market in the first place, and it sure wasn't two wheeled living rooms or Saturn V rocketships. It was nice, cheap little runaround bikes that cost next to nothing and used a tank of fuel a month. It's high time that they brought them back.
Alexander Mark: Thanks! The "Miracle Mile" in the nearest city has dealerships fighting with each other to sell you an US$8000 car: You can pick from 2009 new Chevy Aveos, Pontiac Waves (same thing), Kia Rios, Toyota Yarises, and Nissan Versas. And let's not even mention the Chrysler dealers who right now would likely give you a Dodge Caliber in exchange for a case of beer and a large pizza.
Importation is tricky as there are various minor regulatory differences which cost next to nothing if the manufacturer does them on thousands of bikes, but can cost well over the MSRP of the motorcycle if you do it yourself.
The bottom line is that in this globalized economy if something can be produced and sold at a profit in Market A at $900 then it should be able to be sold in Market B at $900 (or so). To have the cheapest bike be almost $3,000 is highway robbery.
as a vintage japanese mc fan, your post-especially the pictures was quite fun!
You can often pickup a CB250 Nighthawk for well under $3000 (new).
80mph and 75mpg for less than $5000. Find another vehicle that can do that. Prius? Nope. Scooter? Nope. City bus? Maybe, depending on how you look at it.
jlstrine55: Thanks!
EZ: Sure, but why not a 100 for a grand? In the city there is no effective difference in the usabilty of a 100 or a 250.
You're dreaming. You forget that in North America motorcycles are subject to safety and emissions standards. The current batch of Indian-mad 100cc bikes all use 1970's technology and have no hope of being brought into compliance with these standards. Even if they could, the cost of emissions certification needs to be included in the selling price, easy to do at $3000.00, impossible at $1000.00. And don't kid yourself, those Indian-made bikes only sell at such a low price because they can be produced and sold in the 100's of thousands. It does not cost any less to manufacture a small bike than it does to produce a large one, but the smaller bike is expected to sell for less, therefore in order to be profitable the smaller bike has to sell in larger numbers, so the question is: in 2009 what is the size of the market for small road-going motorcycles in North America ? obviously Honda and all the others have calculated that this market segment is not large enough to justify the (large) investment required to either develop a new model or bring an existing small-capacity model into compliance with current and future regulations.
Absolutely incorrect. Your statement that the small and big bikes cost the same to manufacture is ridiculous. So according to you a Honda VTX1800 costs the same to make as a CB100? Furthermore, the emission standards compliance for at 100cc four stroke single at the factory adds barely a few dollars to the cost. As for safety standards, again, the compliance AT THE FACTORY is a few bucks. Instead of plugging in headlight A they plug in headlight B. Big deal. The tooling for the vertical Honda small single was amortized and paid for a few centuries ago, so there is NO need to do anything in development other than just stamp out a few zillion more for the North American market.
loved the ad pics. I am thinking that a 100 cc bike would be pretty underpowered.
If you're trying to race Hayabusas, most definitely. But with an average weight rider, a 100 will keep up to highway speeds, so what more do you need? :)
Anyone who doesn't believe a small, street legal bike isn't marketable in America needs to price all the older, still running ones that are being bought today. A clean, low mileage, street legal CT70 from the 1980's will cost you $1500.00 or so. And they are selling like hotcakes - check it out. Why? Because people still want a small, street legal, "errand runner", but can't buy one any other way. The argument that a 100cc American bike can't be produced inexpensively is hog wash. Even if it were true, people would pay the higher price to get one. They are paying 2 and 3 times whay older ones should be worth now.
I say the problem is liability issues in this country. The manufacturers know that young, inexperienced riders will get out on the roads and die on them. Not a problem in India, but a HUGE one in America - 'the land of the liable' - where you can sue anyone for anything and everyone does.
Whatever the snag, I hope they get it resolved and once again bring us the smaller, economical, little bikes that won our hearts and made Honda the successful company it is.
Oh Ya....
And twitchy handling little scooters don't count! Americans want a MOTORCYCLE - with foot pegs and gears. Maybe even a clutch. Something you must throw your leg over and can put full sized knobby tires on if you want. I'll be glad when this 'scooter craze' runs it's course.
I agree with you fully Ralph!
Thanks for the Hub. I love the old pictures and ads. Auto companies understand the laws of supply and demand. There in business to make money. SUV's made them big money before gas prices skyrocketed. Why did it go through the roof?? that's a different hub. Thanks loved your hub.
I think this is how America runs. We dont stoop that low. All for safety, only because people that really want a fast bike will get one. OR, This does sound crazy but I think its a well hidden plan from the super rich owners/and so on of companies to stay rich. Soo lets not sell cheaper stuff, have the rich buy expensive things, have the poor buy the used expensive things. who will buy the used expensive things if the poor are buying their own equally awesome stuff at a cheaper price? could cause the rich to stay richer by buying cheaper things and thus losing alot of profit from more expensive things. All these companies have their name out there already, you know they will last. just shady that they dont sell cheaper stuff that'll last too? they know we'll buy the expensive things, this is why were in this economy junk hole to begin with. hmmmm sounds like a conspiracy to me!
HarperSmith: You're welcome! And I'm still waiting for that cheap 100 minithumper! :)
ALEXinsocal: I think we have to call that ALEXonomics! :)
Why Can't Honda Sell India's $900 100cc Street Motorcycle In The USA? in the News
- Honda Developing Indian Small Car to Challenge Suzuki (Update1)Bloomberg11 hours ago
Nov. 11 (Bloomberg) -- Honda Motor Co. , Japan’s second- largest carmaker, is developing a new small car for India as it aims to challenge Suzuki Motor Corp.
- Honda to Widen Job Cuts at U.K. Factory as Sales Fall (Update1)Bloomberg23 hours ago
Nov. 11 (Bloomberg) -- Honda Motor Co. , Japan’s second- largest carmaker, will widen job cuts at its factory in Swindon, U.K., as demand in Europe falls after the end of government stimulus programs.
- Honda plans small car for Indiarediff.com12 hours ago
Japanese auto major Honda on Wednesday said it will focus on India and China for future growth as sales in developed markets like the United States and Europe continue to drag due to the global economic downturn.
Gypsy Willow says:
6 months ago
You are so funny, I was laughing out loud reading this hub which should make any one think hard about the current motor cycle scene. I would like one of those little old Hondas myself. When ever one of those massive 1000cc bikes rushes past white lining on the freeway I just think "organ donor"