Honda Motorcycles and Scooters India held 28 percent share of the total global volumes of its parent company.
Honda Motorcycles and Scooters India (HMSI) is now the top contributor to its parent Honda Motor Company (HMC), not just on the sales front, but also in production. HMSI held a 28 percent share of the total global volumes of Honda Motor Company’s 2-wheeler business in FY17 as opposed to 26 percent in FY16.
Honda India expects this 28 percent to go up to 30 percent this fiscal and when it comes to total units, HMSI is the largest contributor to its parent Honda Motor Company’s 2-wheeler business. HMSI has been a profitable affair so far to Honda Motor Company and all the reinvestments and capacity expansions happening are from HMSI’s own money and it is neither a debt nor money being borrowed from Honda Motor Company, Japan.
HMSI has planned an additional Rs. 1600 crores investment this fiscal primarily for new models and a capacity expansion at its Karnataka plant. Honda has invested a total of Rs. 9500 crores including this Rs. 1600 crores, says a top executive from Honda. Honda India will be launching four new products this year, one being the Africa Twin. Honda has also confirmed that two of them will be motorcycles and the rest two will be scooters.
Honda has a target of achieving a total of 6 million units (both bikes and scooters) for FY 17-18. Honda’s forte has been the scooters segment and forecasts a 66 percent contribution from scooters and 34 percent from motorcycles. The past two fiscals too saw a similar mix of scooters and motorcycles.
Honda India is now looking at consolidating its motorcycle lineup. Honda currently holds a 14 percent market share in motorcycles and is the second largest motorcycle maker, behind its erstwhile partner Hero MotoCorp and ahead of Bajaj.
Honda Global 2-Wheeler Sales
– HMSI held a 28 percent share of global volumes of HMC’s 2-wheeler business in FY17
– In FY16, this figure stood at a slighly lower 26 percent
– Honda expects this figure to go up to 30 percent this fiscal