Honda to create dominance in two-wheeler segment of Indian industry

Tuesday 10 April 2012, 10:41 AM by

Industry experts believe that Honda will implement all strategies to increase its share in the Indian auto market. Honda aims that the overall sales of company for this fiscal will go exactly the same way, as it is expecting. Its completely owned subsidiary, HMSI (Honda Motorcycle & Scooter India) rolled out around 2.1 million scooters and motorcycles in 2011-12 and covered 14 per cent share in the market.

Owing to the company’s second manufacturing unit in Rajasthan, its sales volume expanded by 27 per cent over fiscal 2011.

Top official of an auto company, said, “HMSI is the company to watch out for in the coming years. We expect it to post sales of over three million units this fiscal with Rajasthan and Manesar clocking 100 per cent capacity.”

In addition to its second production plant, the company has also acknowledged its third unit in Karnataka, wherein it will have an annual production capacity of 1.8 million vehicles. It is expected that the company will attain its full production capacity by the next two years, which concludes that the company will have a production capacity of around 5 million scooters and bikes annually by 2014-15.

An industry expert said “We expect to see an intense tug-of-war. The Munjals are not going to yield their top slot in a hurry and Honda will have to think of something dramatic that can succeed in relegating the Splendor and Passion brands to the sidelines.”

On the other hand Hero MotoCorp, the segment leader reported its annual sales of 6.23 million units for the end of fiscal year 2012. With this, the company aims to record a growth rate of 15 per cent in this fiscal, which will lead to the sales figures of 7 million vehicles.

Bajaj Auto, one of the prominent two-wheeler makers, is aiming to attain a five million mark by the end of this fiscal. The company believes that increase in its market share will mainly base over the sales of bikes, whereas the commercial vehicles will be held responsible for the remaining. In addition, TVS Motor which recorded sales figures of around 2.2 million units at the end of fiscal year 2012 has eyed upon a growth of more than 10 per cent for the current financial year.

As per Honda’s strategy for the Indian auto market, it will not be an easy task for the company to grab half sales of Hero MotoCorp and also to maintain a remarkable relationship with the customers. Thus, Honda will look upon the emerging demands of auto aficionados, who are keen to experience something new.

This plan of the company has performed well in the case of Activa, a gearless scooter, which went miles away from its competitors. On the other hand, the motorcycles of Honda have not captured the hearts of Indian audience, when compared to the sales of scooters. An industry expert said, “Unless its bike sales surge ahead dramatically, it will not be easy to catch up with Hero.”

Several industry experts believes that the market of gearless scooters have shown a rapid growth, whereas motorcycles account for a large volume of sales. Going with this fact, Bajaj Auto was encouraged to way out its conventional business of scooters, and thus it offered bikes. With this attempt, the company is eager to expand its market share in the international market to 20 per cent, which is almost double.

It must be noted that the competitors of Honda believes that the company will soon emerge as a dominant in the two wheeler segment. The company has already specified its objective to attain 30 per cent share in the Indian industry by the end of 2020. Till then, Honda will transform India as its biggest two-wheeler base in the world base and a prominent place for its product development.

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