I am a firm believer that people in charge of two wheeler companies must ride two wheelers themselves. It doesn’t guarantee increased sales or richer coffers, but it gives these decision makers the chutzpah to follow their gut instead of relying solely on market research. And, that’s great not just for business, but for those who invest their trust and belief in the brand as well.
Enter Minoru Kato, the new President and CEO of Honda Motorcycles and Scooters India (HMSI). Kato tells us he loves riding motorcycles, especially his CB1300. Now for the uninformed, the Honda CB1300 is a retro-modern, inline four, super-sounding, gorgeous motorcycle. And no, it isn’t sold in India, but it might find takers if it did!
Future ready
So, when a man who enjoys riding motorcycles says that ‘Fun’ is a crucial aspect of his plans for Honda in India, it’s time to applaud. But, Kato isn’t steering away from the basics. He wants Honda to lead in both quality and quantity during his stint in India. The quality bit is a never-ending and ongoing exercise and Honda has that bit fairly well in hand. As for quantity, his company is already investing towards increasing capacity at its Karnataka plant. His goal is for Honda to hit 6 million in sales in 2017-18 financial year.
But, Kato has a keen eye on the future too. He wants HMSI to play a big part in Honda’s future and thinks that BS-VI is the ideal platform for it. He intends making India the export hub for BS-VI complaint bikes for global consumption. BS-VI, which comes into effect in 2020, will require newer, more expensive technology like fuel injection and on-board diagnostics.
He has already setup a cross-functional team to ensure quicker, cost-effective and high quality produce for everything related to BS-VI. But, why stop where the regulations do? So, Kato’s plan is to have HMSI develop and execute newer technologies and add to the already huge pool of patents accumulated by Honda as a brand globally.
The ‘Fun’ talk
Minoru Kato likes a freewheeling chat as well. And when asked to better explain ‘Fun’ he didn’t hold back. “We will introduce the Africa Twin soon. But, it will not have many sales.” He does, however, have hope. “In the future, I expect the big or fun motorcycle market to grow. And when it does, all we need is to consider which model to bring in to meet customer expectations.”
Kato also doesn’t hide behind the language barrier or vague replies to get away from difficult questions. Case in point being the discussion we had around bringing in on/off-road bikes and larger capacity scooters to India. Now, Kato could have conveniently pulled the ‘We have no plans’ curtain and ended it. But he decided to indulge us. “As of today, India has big potential for different models with various engine and wheel sizes. And we can introduce them. But, first we need to study the exact customer demand.”
This listening approach will particularly work wonders for the enthusiasts amongst us. Okay, so the Activas will continue to rule the roost and scooters will still occupy most of Honda’s bandwidth. But, there’s clearly some different stuff heading our way too. For starters, there’s the Africa Twin. Honda will follow it up with the launch of three completely new nameplates. Two of them will be scooters, of course, and the third, a motorcycle, will be a mass-market offering.
Kato also doesn’t associate ‘fun’ with just big engines or big power And that means these new offerings, as well as Honda’s commuter landscape in general, might be a lot more exciting. This excitement could come in the form of design, dynamics or customisation. Maybe as lucrative pricing even. Then, there will be more genres.
Support system
The fact that Honda is working on a bike to take on the Royal Enfield 350 Classic is old news by now. This genre is new to Honda but with trusty lieutenants in Yadvinder Singh Guleria and Tetsuya Komine, Kato expects to deliver a unique and all-round agreeable proposition. But that’s not where it ends. Guleria is great at sales, and Komine, given that he too completely loves riding motorcycles, is bound to deliver some nice-to-ride bikes beyond the 350 challenger as well.
As we see it then, especially for the enthusiasts, Minoru Kato shows a lot of promise. After all, when the CEO of a motorcycle company wants to ride with enthusiasts and hear them out while negotiating the great outdoors instead of focusing only on numbers and profitability in a comfortable, plush office surrounded by bean counters, he clearly has his priorities right.
