Honda Motorcycle and Scooter India (HMSI), the fully-owned two-wheeler subsidiary of Honda Motor Company, Japan, will be investing Rs. 100 crore every year for capacity expansion, according to Shinji Aoyama, President and Chef Executive Officer.
Speaking to The Hindu, Mr. Aoyama said the company had invested Rs. 900 crore so far and the aim was to achieve a growth rate of 17 per cent annually.
The company was hopeful of selling 1.25 million two-wheelers in the current fiscal against 1.07 million vehicles in the previous year.
The target for next year was fixed at 1.5 million scooters and motorcycles, he said. At present, the main growth was coming from the motorcycle segment.
In the scooter segment, sales of Activa brand, the basic model, were growing fast. Mr. Aoyama was in Chennai in connection with the final round of ‘Honda One Make Race’.
On future plans, Mr. Aoyama said the company would be launching 110-cc motorcycle in the Indian market in the current financial year targeting the youth.
Though it would be in the 100-cc plus category, it would be a sporty bike, Mr. Aoyama added.
On the expansion of dealer network, he said the company at present had 685 outlets. The plan was to reach 770 outlets in the current financial year.
All Honda Motor vehicles would adhere to BS-III norms which would be in force from next near.
On the export front, he said the company had exported 70,000 two-wheelers mainly to European countries and Latin America.
About the competition in the two-wheeler segment, following the proposed entry of the U.S.-based Harley Davidson motorcycles into the Indian market, the launch of two new 125-cc category scooters and the proposed introduction of motorcycles by Mahindra 2-Wheelers, and the launch of super-bikes by Italy headquartered motorbike giant Ducati, (which had introduced five new superbikes in the Indian two-wheeler market), Mr. Aoyama said the two-wheeler market was very big in India and there would be enough space for all.
Honda Motorcycle products include Activa, Dio and Aviator in the scooters segment and Unicorn and Stunner in the motorcycles segment.