Honda will be introducing 14 updated products next year with the BSIV compliant engines while costs are also expected to increase on all models courtesy of the upgrades.
Honda Motorcycle and Scooter India (HMSI) will be introducing a host of mechanical upgrades across its entire lineup for the 2016 model year. As per a recent report, the automaker has 14 products lined up for minor technical upgrades and modifications next year which include updating the engines BSIV emission norms along with the inclusion of ABS as a safety feature as mandated by the government.
The Indian government has announced 31st March 2017 as the last date to upgrade new products with BSIV emission norms and Honda wants to be well prepared way before the deadline. Certainly a positive move, the company will be introducing the refreshed models every month throughout the year. In addition, Honda also confirmed that the company will be introducing Combi-Braking System (CBS) in all two-wheelers up to 125cc while Anti-Lock Braking System (ABS) will be offered as standard on offerings above 125cc.
Honda further iterated that updating its models to BSIV norms and CBS/ABS will result in higher production cost. As a result, prices will see a surge across all models and the automaker reckons the demand will see a considerable fall. Honda hasn’t ruled out the possibility of costs increasing further if BS V norms are implemented on two-wheelers as well, which are set to be levied on cars from 2019. That said, cost effective solutions are also under development to keep the price escalation to a minimum.
Talking about growth, Honda is looking at a positive 2016-17 financial year with a 15 percent growth rate. The company is also looking to achieve 100 percent capacity utilisation at its manufacturing plants and will commence operations at the scooter only production facility in Gujarat by the end of January 2016. The plant will have an annual capacity of six lakh units on a single line and another line will be installed after four months with the same capacity. Honda is also expanding its Karnataka based facility to meet the growing demand.
Source – EconomicTimes.com