Honda Motorcycle & Scooter India (HMSI) is getting set to close in on Hero Motocorp, the world's largest two wheeler maker (in terms of volume).
HMSI achieved its highest ever annual sales of 37.21 lakh units in the last financial year and the company is aiming to sell 45 lakh units in the current fiscal which is a good 21% increase. A senior company official stated that sales till date are right on track to achieve this goal.
The Japanese two wheeler maker currently operates three manufacturing facilities - Tapukara in Rajasthan (12 lakh units), Manesar in Haryana (16 lakh units) and Narasapura in Karnataka (18 lakh units) - with a combined annual production capacity of 46 lakh units. In addition, a fourth plant at Ahmedabad with a proposed annual production capacity of 12 lakh units would go on stream in 2015-16.
Honda is planning to increase sales partly by tapping the potential of rural markets. New products and aggressive launch campaigns are also on the cards. The company inducted 800 new outlets to its aftersales network last fiscal and this year another 1,000 would be added.
Even if HMSI achieves its sales target, it would still lag behind Hero Motocorp which sold 6.245 million units last fiscal.