BUSINESS

Nano not to hit two-wheelers: Hero Honda

Source:PTI
March 26, 2009 12:30 IST
The country's largest bike maker, Hero Honda, on Thursday said the launch of the Rs 1 lakh car 'Nano' will not have any impact on the two-wheeler industry.

"Nothing much has changed since the unveiling of Nano at the Auto Expo except for the announcement of prices. I still maintain it is not going to have any real impact on two-wheelers," Hero Honda Motors managing director and chief executive officer Pawan Munjal said on the sidelines of the CII Annual Session.

He said going by the price there is a fair difference between the cost of ownership and maintenance of Nano and two-wheelers.

"The price of Nano is closer to a high-end bike, the buyer for which is not a car customer," he said, however, adding that there may be some two-wheeler buyers who are attracted to Nano.

On the sales prospect of the company, he said, "We are looking at a double-digit growth for the fiscal 2008-09."

"Going by the current circumstances, it is difficult to predict for the next fiscal but the first quarter is looking good and the second quarter may not be as good as the first one due to issues like rain," he said, adding that the third and the fourth quarters would be difficult.

About the overall economy, he said: "We have a couple of tough quarters ahead to go through but India will probably be the first to come out of the downturn."

Source: PTI
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