Honda to launch scooter, bike to get 2.1 m sales

With the commissioning of its second plant and launch of new models, Honda Motorcycle & Scooters India (HMSI) is confident of achieving its FY12 sales target of 2.1 million, despite a slow down outlook. The company also plans to launch a new scooter and a bike next year.

While other two wheeler makers such as Hero MotoCorp, Bajaj and TVS reported fall in sales in the range of 5-15 per cent in October when compared with September this year, Honda Motorcycle managed to maintain its sales volumes with a marginal drop in sales. The company sold 178,181 two wheelers in October, against 178,146 units in September.

“We expect this growth momentum to continue. We plan to sell 21 lakh units from our Manesar and Tapukara plant and end the fiscal FY’11-12 with an estimated 27 per cent growth over 16.56 lakh units sold in FY’10-11. We are on track to achieve this target,” NK Rattan, vice-president – sales and marketing, HMSI told Financial Chronicle.

The second plant of HMSI at Tapukara, Rajasthan commenced operations in July this year. Already the first phase of 0.6 million units production capacity has been completed. At the second factory in Rajasthan, it intends to increase the total capacity of 1.2 million units by March 2012. “This shall ease out the waiting period to less than one month,” Rattan said.

He also said the present order booking is around two months and the company is in a position to serve the customers faster. “Aviator and CBF Stunner are doing very well,” he added, but didn’t provide the details.

The company is mulling more launches to boost sales further. It plans to introduce a new scooter model at the upcoming Auto Expo in New Delhi in January, followed by a motorcycle targeted at youngsters early next fiscal.

Further, to meet the growing demand in South India, the company has recently laid the foundation stone of its third plant in Karnataka. With its expansion from 16.5 lakh units in FY2010-11 to 40 lakh units in early half of 2013, the company hopes to reduce waiting periods for all its products.

“HMSI continues to maintain its leadership position in the scooters segment through its flagship brand Activa (besides Aviator and Dio) enjoying a market share of 45.4 per cent in Q2, 2011- 12,” according to Subrata Ray, senior vice-president – corporate ratings, Icra.