Honda is looking to almost double two-wheeler sales in India in the next 2-3 years through its wholly-owned arm, Honda Motorcycle & Scooter India (HMSI).
Not only is the company rapidly adding capacity in India, but is also believed to be readying more bikes at the entry level, lower price band which, till now, has been known to be the forte of Hero Honda Motors, its joint venture with the Hero Group.
HMSI officials confirmed that from sales of 12.7 lakh units (bikes and scooters) last fiscal, the company is gearing up to sell about 22 lakh units in the “next 2-3 years. The way demand is growing, we have been adding three lakh units every year anyway.”
A second manufacturing plant with an annual capacity of six lakh units will come on stream in the second half of 2011, giving a further boost to HMSI’s presence in the two-wheeler market. It has already launched CB Twister, a 110cc bike, which directly competes with Hero Honda’s products in the same segment.
Officials declined to divulge product plan for the next few years but maintained that 1-2 completely new products would be launched every year.
Ordinarily, HMSI’s expansion wouldn’t raise eyebrows. But coming as it does amidst a growing buzz about Honda wanting to opt out of the JV with Hero Group in India, it is evident that Honda’s game plan would be to storm the Indian two-wheeler market with its own products, straddling all segments of motorcycles and scooters, outside the world’s most successful joint venture.
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