Honda to expand network, eyes long-term growth

Riding high on a 49% growth against the industry average of 3.1% during the first half of the fiscal (April-September'12), Honda Motorcycle and Scooter India (HMSI) has chalked out expansion plans for its dealers' network and production facilities, with an eye on the long-term target of producing 10 million units by 2019-20. HMSI is a 100%-owned subsidiary of Honda Motor Company Ltd.

One of the fastest-growing two-wheeler companies, HMSI has registered 64% growth in motorcycle sales and 39% in the scooter segment during the first half.

The maximum growth of 95% has been witnessed in the 100-110 cc motorcycle segment, followed by 81% in 150-cc bikes, 55% in the 125 cc and 39% in the automatic scooter segment during the first half.

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Focussing on business process re-engineering, the company has invested ₹150 crore in setting up of a new technical research centre within the HMSI Manesar facility.

'Catering to the needs of local customers and growing demand from Tier-II and III centres, the company will introduce new models, with increased mileage in our products and cut prices, while going for more local sourcing,' said Keita Muramatsu, president and CEO, HMSI.

The company will expand its dealers' network from 1,653 to 2,000 by 2012-13, apart from upgrading the existing service centres. In addition, to achieve its target, Honda is expected to come up with seven to eight new facilities in near future. HMSI's third facility is under construction in Karnataka and is expected to come on stream by 2014 and produce 1.2 million units annually. It will hire 3,000-4,000.

'We're planning to take our scooter and motorcycle production ratio from current 59:41 to 50:50 by 2013,' said Muramatsu.

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