Hero Moto planed to phase-out Karizma due to sales cut

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Hero MotoCorp is about to phasing out its 223cc motorcycle Karizma until 2018 and showing up new models in a segment where the two-wheeler’ largest manufacturer of the world was at the apex at the time but now it has an insignificant existence, as per a familiar source of the development.

As per the sources, “The sales of Karizma have been pointless. The company desires to put it an end and initiate latest models in the section in 2018.” The two models of this motorcycle, namely Karizma and Karizma ZMR, have been sold only 289 units in April-November in the domestic market, gave market share of a measly 0.24 percent to Hero in the 200-250cc Indian market that the 121,868 units of motorcycle sold.

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Hero replied of an e-mail, “Karizma is an exclusive motorcycle and have a trusty fan following and this franchise will be continued to strengthen with regular upgrades and refreshes.

As said earlier, our market leadership will be kept merging with new motorcycles and scooters with youthful aesthetics, advanced technology and value-added features.

” Karizma is the brand that the famous CBZ was replaced and it is a Hero’s only brand that offers 200-250cc section. With the comparison of its rival Bajaj Auto Ltd’s Pulsar 220, it achieved sales of 64,829 units between April-November. Rs 84,000 and Rs 110,000 is the respective sales of the two Karizma variants.

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479,856 unit two-wheeler were sold by the Hero itself only in the month of November, and 100-150cc category is the major part of this sale. This company has not attained same success from other premium segment that starts from Rs. 100,000 or above 150cc.

Bajaj also have many more brands that are above 200cc category besides Pulsar. They may mention that its engine capacity does not always link with its model price.

So there are possibilities of a lower engine capacity may be of high price because of its feature, branding and rivalry. The sales of motorcycle in the domestic market have been 778,178 units and scooters sold 388,692 units in November.