Honda Motorcycle to launch four models
MUMBAI: Honda Motorcycle and Scooter India Pvt Ltd (HMSI) will launch four completely new models in 2017-18 even as it puts off the plan to develop a motorcycle in the so-called middle-weight segment, Minoru Kato, president and CEO, HMSI, said in an interview on Thursday.
The second largest twowheeler maker by volumes, envisages to sell 6 million scooters and motorcycles this fiscal in a market that has just recovered from the impact of currency invalidation and riding its hopes on normal monsoons.
“So far, from my point of view, the cost competitiveness as of today is not enough to compete in that segment,” said Kato. While HMSI is very cost competitive for big volume models like Activa, it doesn’t have an experience of developing motorcycles in 250cc to 450cc segment, he said.
The four new models HMSI plans to launch in the current year includes the 1000ccc Africa Twin that sports the advanced dual clutch technology and three more undisclosed brand new models — a bike and two scooters. HMSI has already started assembling the completely knocked down kits of the Africa Twin. The model will go on sale next month.
Even as scooters, where HMSI leads selling every second model in the country, will continue to be the volume driver for the company, motorcycles shares is expected to go up in the overall volumes, said Kato.
HMSI closed 2016-17 with sales of 4.7 million units, up 10% from the year-ago period. Even as twowheeler sales in India grew 6.89% in fiscal 2017, up 7% over the last year, motorcycles grew at a slower pace of 4% in the same period, according to the Society of Indian Automobile Manufacturer (Siam).
HMSI, which emerged as the biggest contributor to Honda’s global sales in 2016, is also planning to make India an export hub once the BS-VI emission norms take effect in 2020, officials told reporters in Mumbai. It has also formed a cross-functional team to lead the migration to BS-VI.
HMSI is planning to invest ₹1,600 crore this year to launch new products and enhance capacity.
The company’s fourth Indian factory being built in Karnataka will commence production in July 2017, taking its annual capacity to 6.4 million units.
Nitesh Sharma, analyst at Phillip Capital India Ltd said, with scooters continuing to grow at a faster pace than motorcycles, HMSI will have an edge over rival Hero MotoCorp. Launch of two new brands in the scooter segment, will further add to the sales momentum, he added.