India Interim Budget 2014: Honda two-wheelers price benefit for customers
An announcement yesterday regarding reduction in excise duty from 12% to 8% on two wheelers has been welcomed by the auto industry. HMSI’s official response is as follows, “Honda welcomes excise duty relief given to auto industry in the Interim Budget 2014. In line with its customer friendly approach, Honda has decided to pass the full benefit of 4% excise duty reduction on two-wheelers to its valued customers across India with immediate effect. Now, all Honda two-wheelers are even more affordable. The price benefit to Honda customer starts from minimum of Rs. 1,600 on Dream Neo and goes upto Rs. 7,600 on CBR 250R.”
An excise duty cut at this point in time fits in well with Honda Motorcycle and Scooter India Pvt. Ltd’s ‘Aggressive & Ambitious’ roadmap for India. This includes capacity expansion with 4th plant at Gujarat in 2015. New Activa 125 is scheduled for launch in April 2014. At Delhi Auto Expo earlier this month, Mr. Takanobu Ito (President, CEO & Representative Director, Honda Motor Company, Japan) said, “HMSI sales volumes have already reached 2nd position for Honda’s two wheeler business worldwide. We believe India may soon be top market for Honda. Today I am happy to announce Honda will reach closer to customers with its new 4th plant in Gujarat. We will invest an additional Rs. 1,100 crore for creating new 1.2 million units annual capacity.”
At Delhi Auto Expo, HMSI showcased new Activa 125, new CBR 650FRC 213V (2013 Moto GP champion), Goldwing (1832cc big bike), CBR 500R (500cc performance bike), PCX 125, CBR1000RR SP (2014), 2014 CB Trigger & Dream Yuga (new colours). With 50% overall growth (YoY), HMSI total sales stood at 344,750 units in Jan’14. Scooter growth was 63% and motorcycle growth was 37% for Jan 2014. HMSI domestic market share was 25% while Dom+Exports stood at 23% in January 2013.