Honda Motor Co Ltd will be expanding its network of dealers and service outlets in India by 25% and introduce new models to achieve sales, Bloomberg reported.
“The world’s biggest motorcycle maker may introduce a new 100 cc motorbike model as early as next financial year hoping to add on to its sales target of 2.1 million units in the current fiscal year,” said Naresh Kumar Rattan, vice president for sales, marketing and corporate affairs.
Last year, Honda sold 1.5 million two-wheelers in India. “India is a market for Honda, especially in motorcycles,” said Rattan. “The Indian market is growing across the board in all categories," he added.
The Tokyo-based company is expanding its operations in India after separating from former partner Hero Motocorp Ltd in March to focus on its own fully owned local unit. The motorcycle maker will spend around Rs 10 billion ($221 million) on its third factory near Bangalore in southern India that will be ready by 2013, Rattan said. According to Society of Indian Automobile Manufacturers (SIAM), about 91% of the 4.9million motorcycles that Hero sold in 2010 were below 125-cc models.
Sales of Motorcycle
The sales of motorcycle will surge about 3 times to about 30 million in 2020 according to Ernst & Young LLP.
The rural sales will increase to 45% of the total in that period from the current 40%. Hero rules the motorcycle market in India , with sales of 4.9 million motorcycles accounting for almost 54% of total deliveries in the year ended March 31, as per data from the automakers association.
Honda which can make 1.6 million motorcycles and scooters in India a year at its Manesar factory in New Delhi will double the capacity of its second plant to 1.2 million by the end of this fiscal year. After Honda’s third manufacturing facility is completed, the company will be able to produce 4 million units a year.
It is also planning to expand its network in rural and semi-urban areas and is organizing camps and marketing campaigns to create brand awareness, Naresh Kumar Rattan said.
Honda Motor Company Ltd is a Japanese multinational corporation manufacturing automobiles and motorcycles. It also manufacturers garden equipment, marine engines, personal watercraft and power generators.
