Honda to extend its presence in India
Honda Motor Corp is planning for an all out presence in the Indian market as there is 20% annual growth in the two wheeler industry. For two wheeler sale-scooters and bikes- , India stands as the second largest market with an annual sale steeping to 8 million units compared to 15 million units in China.
Honda set a target of 1.25 million scooters and bikes for the FY 2009-10 which may be increased to 1.5 million units for FY 2010-11. As a result the company is making a local study about the installation of a second plant, said its President and CEO. The projected capacity of the company for 2010-11 is 1.5 million units. By possessing 13% of the market share, the company seeks to explore all possibilities to boost the sale volume, said the company’s head for sales and marketing.
The combined sale of Honda Motor and Hero Honda is expected to cross 4 million units this year. In 2009 December, the two wheeler segment saw a new entrant from Honda, a bike under 100cc to counter Hero Honda. It is to be noted that Honda does possess 26% and Hero Honda has got 29% in the Hero Honda company. The anticipated sale for 2010-11 by Honda motorcycle is an increase of 20% thanks to 110cc CB Twister bike juxtaposing Hero Honda’s Passion and Splendor and Bajaj’s Discover DTSi.