HMSI targets over 20%sales jump in 2010-11

HMSI targets over 20%sales jump in 2010-11

Press Trust of India / Tapukara (rajasthan) May 31, 2010, 16:36 IST

Two-wheeler maker Honda Motorcycle & Scooter India (HMSI) today said it is expecting its sales to grow by over 20 per cent this fiscal.

"HMSI sold 12.7 lakh units last fiscal and this fiscal our target is to sell 15.5 lakh units," HMSI President and CEO Shinji Aoyama told reporters at the foundation stone laying ceremony of its second manufacturing facility here.

In 2009-10, HMSI's motorcycle sales were at 5.2 lakh units and scooter sales stood at 7.5 lakh units. The company is expecting equal contributions this financial year from both the segments.

Early this month, Aoyama had said that its bike sales will overtake scooter sales in the country next fiscal and apart from existing models, new launches will spur growth in the motorcycle segment.

The wholly-owned subsidiary of Japanese auto giant Honda is targeting to export 1.15 lakh during this fiscal compared to 80,000 units in 2009-10.

It exports motorcycles to over 40 countries, including Latin America, Europe and other neighbouring nations.

HMSI's second manufacturing facility will be set up at an initial investment of Rs 500 crore.

"We have reached our peak capacity at Manesar plant, so we are starting our second plant at Tapukara. Mass production in the second plant will start by the second half of 2011," Aoyama said, adding that the company has not yet zeroed in on the model range to be manufactured at the plant.

The new 2.4 lakh sq metre facility in Rajasthan will have an initial capacity to produce six lakh units per annum. Depending on market demand, the output can be expanded later up to 12 lakh units annually and the investment can go up to Rs 1,100 crore.

"It is a significant milestone for Honda's two-wheeler business in India. India is one of the most important markets for future growth," Honda Motor Corporation Chief Operating Officer (Asia and Ocenia) Fumihiko Ike said.

Once fully operational, the plant is expected give employment to about 3,000 people.

The company's current plan at Manesar has an anvil capacity of 15.5 lakh units, which will be expanded to 16 lakh units by next year. When its second plan goes on stream, HMSI's total production capacity will be 22 lakh units per annum.