HMSI plans to play bullish; foresees 500 new dealers by the end of 2012

Wednesday 18 July 2012, 10:50 AM by

The completely owned two-wheeler subsidiary of Honda Motor Company, Honda Motorcycle & Scooter India (HMSI) has declared that the auto maker is looking forward to expand its network of official dealerships. The auto maker currently rejoices with a market share of 14 per cent in the two-wheeler segment of Indian auto industry. HMSI is eyeing to take its official network to 2000 by opening the doors of 500 new dealers and sub-dealers.

As a part of its new strategy, the company will foray in tier-II and tier-III cities, which will probably help it to attain its anticipated growth of 30 per cent, in terms of sales, in fiscal 2013.

Y S Guleria, Vice-President, Sales and Marketing, HMSI, quoted, “We will be adding 500 new dealers, sub-dealers in current fiscal which will take our network's total strength of 2,000. The main focus will be on expanding base in tier-II and tier-III cities.”

Complemented with a surge in demand, the auto maker is aiming to deliver 27.5 lacs vehicles in the Indian auto market with a mere stake of 14 per cent. During the last fiscal, the company delivered the possession of 21 lacs new scooters and motorcycles to its customers in the Indian market.

Guleria further added, “In total sales, scooter and motorbikes will have 50 per cent each share.”

In order to cope up with the increase in demand, the auto maker is already working on the designing of a new production unit in Karnataka with an estimated output of 12 lac units each year. Without sharing any details regarding the investment plans of the auto maker, he further added, “This new unit is expected to start operations in April 2013.”

Presently, the company operates two manufacturing facilities in Haryana and Rajasthan, which together yield a production capacity of 28 lac units per annum.