Honda Motor Company, the Japanese auto maker, is looking ahead to cash on the 100 cc motorcycles segment of the Indian auto market as the demand in this category is rising and individuals are not satisfied with the available options. This move will be part of the company's strategy to emerge as a market leader in the two-wheeler industry by the end of 2020.
The decision from the company's end comes just 1.5 years after separation from its official partner, Hero Group. In the present scenario, Indian industry is considered as the second biggest two-wheeler market, following China. On this, global Chief Executive Officer of Honda Motors, Takanobu Ito, quoted, “Using further growth in emerging markets, where continuous expansion is expected, as a driving force, Honda will continue to be proactive in evolving its motorcycle business. In India, Honda will strive to further grow its motorcycle business through introduction of highly competitive models in the 100cc segment, which is the largest segment in the motorcycle market.”
Reportedly, the new line-up from Honda is expected to be based on the manufacturing platform of Dream Yuga, which was introduced in May this year. Dream Yuga 110 happens to be the first commuter in two-wheeler segment, which targeted the supremacy of Hero MotoCorp in the Indian auto industry. Reportedly, the bike has been doing good in the market and is fetching decent profits for the auto maker and thus, the company is looking ahead to bank on the same segment models, which will help it to boost volumes and expand brand presence in India.
Interestingly, Honda Motors was the only auto maker to register strong sales in the last few couple of months, for instance, it came up with 39 per cent growth in August and 57 per cent in July 2012. During the mentioned period, the Indian two-wheeler market dominant Hero MotoCorp, Bajaj and TVS reported a fall in their sales, resulting in piling up of inventories.
On the other hand, the Japanese auto company is also planning to expand its production capacity, which will help it in future to cope up with the increasing demands. With two units being operational at Manesar and Tapukara, the company is likely to start the production at its Bangalore facility between first six months of 2013. Following this move, the annual production capacity of Honda Motors will attain 4 million mark from the current 2.8 million units being produced at its two units.
