Honda tones down forecast by 5-10 million units for two wheeler market in India
Cooling of economic growth where India’s motorcycle market is concerned, has made the world’s largest maker of motorcycles, Honda Motors Co tone down its forecasts. Honda believes that industry deliveries will only expand to 20-25 million by 2020 as against an earlier estimation of 30 million.
Motorcycles accounted for over 20% of Honda Motorcycle Co’s operating profit last fiscal. However, in India, growth fell short of Honda’s predictions as the two wheeler segment expanded in the year through March with deliveries increasing 7.3% to 14.8 million units. Honda had earlier predicted that the Indian market would grow faster and would probably reach 16-18 million units to date.
Honda sales increased 37% to 3.6 million units last fiscal, thus making the company the second largest two wheeler manufacturer after Hero MotoCorp. Honda is also in the process of setting up its fourth plant in India in Gujarat. This plant should be functional by mid 2015 taking total capacity to 5.8 million units per annum. Service dealers of the company is also to be augmented to a total of 3,400 sales and service outlets in 2015 while the company aims to take this total to 5,000 units in the coming years.
New launches in India under the Dream series saw a significant increase during the past year. Honda has revealed their intention to focus on Dream series in the rural segment in India in the months ahead and also with more sales and service outlets being planned for the coming year.
As of now, Honda has confirmed two new motorcycle launches for India this year. This will be in the form of a new Dream Series bike and the second will be a completely new motorcycle for the 160cc sporty segment. Honda aims to increase their sales to 45 lakh units this fiscal, up 22% from last fiscal.
Source Live Mint