Honda 2W India sets up new overseas business expansion vertical

by Mayank Dhingra 15 Apr 2021

HMSI had started exports from India in 2001 with the Activa automatic scooter

Honda Motorcycle and Scooter India (HMSI) has announced setting up a new ‘Overseas Business Expansion’ vertical at its manufacturing-cum-operations facility in Manesar, Haryana.

The move comes after the transition of its entire product portfolio to BS VI emission norms, which are in-line with other stringent emission standards currently in levy in major developed economies.

The new business vertical will integrate its existing Ex-Im (export-import) sales function with the quality, procurement, vendor development, engineering homologation, manufacturing and logistics operations, with an aim of exporting high-quality two-wheelers to some of the most advanced markets of the world.

The new function will see an organisational restructuring to bring together 100 of existing HMSI associates from the aforementioned SEDBQ (sales, engineering, development, buying and quality) functions and work on this ambitious project targeted to make India an export hub.

Presently, the company serves over 35 markets across Europe, Central and Latin America, Middle-East, South-East Asia, Japan and the SAARC countries.

Global product strategy
With BS VI, and with the recently-introduced products such as the midsized Honda H’ness CB 350 and Honda CB350RS, the company is looking to explore the full potential of these two-wheeler models, while eyeing more profitability by leveraging economies of scale.

It says its 19-model two-wheeler export portfolio fulfils specific requirements of homologation and other regulatory compliances including those for Euro 5 emission norms.

According to Atsushi Ogata, managing director, president and CEO, HMSI, “With an eye on the future, Honda Two-Wheelers India aims to further consolidate its No. 1 position in Honda’s global motorcycle business while unlocking the next chapter of ‘Make in India, for India & the World’ in the BSVI era.”

“With this major organisational restructuring, the company is strengthening its business constitution and improving competitiveness to meet the high expectations from global Honda,” Ogata added.  

HMSI had started exports from India in 2001 with the Activa automatic scooter and surpassed the cumulative 1 million-unit shipment milestone in 2016.

HMSI, which sold 38,67,817 two-wheelers in India in FY2021 (-17.82%), comprising 23,28,778 scooters and 15,39,039 motorcycles, will be looking to rev up its exports which took a hit in a pandemic-ravaged fiscal year. In FY2021, the company shipped a total of 209,789 units, down 35.72% year on year (FY2020: 326,369).