Honda Motorcycle and Scooter India (HMSI), which at present holds a 13 percent market share, intends to maintain at least a 17 percent sales growth in 2009-10. In 2008-09, the motorcycle manufacturer recorded sales of 10.7 lakh units. With profitability improving, the company now plans to put in place its expansion plans.
A company spokesperson said, “We are gearing up to transform into a full line-up company and serve all kinds of customer needs. Improving the product portfolio is our first priority. By the end of this financial year, HMSI will enter the 100cc class and launch newer models.”
HMSI plans to increase production capacity at its Manesar facility to 1.5 million in the current fiscal year from 1.2 million units. The company is anticipating annual sales of 1.25 million units in 2009-10, up from 1.07 million in the previous year. The spokesperson adds, “So far, we have invested more than Rs 900 crore and we expect to invest another Rs 300 crore for capacity expansion and new model introduction in the next three years.”
HMSI is also looking to increase its dealer network. The two-wheeler player has at present 664 outlets which include 339 dealers and 325 branches/sub-dealers. This will be expanded further to 770 outlets in 2009-10.
For Honda, India is the fifth largest overseas two-wheeler market after Indonesia, Brazil, Vietnam and Thailand, in terms of units sold. At present it sells both scooters and motorcycles including the Unicorn, CBF Stunner, Shine, Activa, Aviator and the Dio.