Honda Motorcycle and Scooter India (HMSI), the wholly owned Indian subsidiary of Honda Motor Co, is launching an aggressive campaign dedicated towards establishing a solid foothold in the domestic two-wheeler market. The company is targeting to produce around 10 million units by the end of 2019-20 fiscal on the Indian turf, which may require setting up of an additional 8 new manufacturing divisions.
The current leader in the two-wheeler market, Hero MotoCorp had a flourishing 28 years old run as a Joint Venture (JV) with Honda, which ended almost one and a half years back in 2010. At present, HMSI is seriously working towards snatching the top position from Hero MotoCorp, as it registered greater sales than its erstwhile partner between the April and September months of the ongoing fiscal 2012-13.
HMSI also affirmed to embark on the launches of several new products in the domestic two-wheeler market in the near future, besides realising a cutback in retail values of its existing fleet as well. The company is framing plans towards a massive localisation in the production of its vehicles in the country and may recruit around 4,000 workers for its third facility in Karnataka.
Expressing his views on the company's plans for the Indian two-wheeler vehicle market, Keita Muramatsu, President and Chief Executive Officer (CEO), HMSI, said, "With our third plant coming up in Karnataka, in fiscal 2013-14 we will have a total production capacity of four million units. In the long term, the target is to have a capacity of 10 million units by 2019-20." When enquired about the number of production facilities would be required by HMSI towards meeting the estimated 2019-20 fiscal target, Muramatsu said, "about seven to eight plants."
Reportedly, Hero MotoCorp, the country's largest two-wheeler manufacturer and Honda's ex-partner, has also declared to have a $ 10 billion turnover by 2017-18 fiscal. The Indian firm has affirmed intentions to achieve the sales mark of 10 million units by 2017-18, out of which the exports will contribute to around 10 per cent of the total vehicles.
Muramatsu said that the company's current focus is its third facility in the state of Karnataka, which will have an annual yield of 1.2 million units initially and will require a manpower of around 3,000 to 4,000. The President refused to divulge information regarding the investments needed by HMSI towards achieving its estimated sales target of 10 million units but revealed that Rs. 1,500 crore is the amount finalised for the upcoming manufacturing facility in Karnataka.
