Honda Motorcycles and HMSI to launch four new models this year

Honda Motorcycles and HMSI to launch four new models this year

It is announced that Honda Motorcycle and India’s second largest two-wheeler manufacturer, Scooter India Pvt. Ltd (HMSI), will be launching four new models this financial year.

According to President and Chief Executive Officer of HMSI, Minoru Kato, the four new models being launched include the 1000cc Africa Twin- which will go on sale starting next month-, another bike and two scooters. Hence, the firm will be taking a pause on its plans on developing a middleweight motorcycle to compete with Royal Enfield.

“So far, from my point of view, the cost competitiveness as of today is not enough to compete in that segment,” said Kato.

HMSI is aiming for the sale of 6 million scooters and motorcycles this financial year ending next March and hopes that the monsoon season will increase its rural demand. The firm sold a total of 4.7 million units in the domestic market, which is a 10% increase from the previous year. Scooters have said to peaked 6.89% whereas motorcycles were reduced by 4%.

“Even as scooters, a market that HMSI leads, selling every second model in the country, will be the key volume driver for the company, the share of motorcycles as a percentage of sales is expected to go up,” added Kato.

HMSI is also planning to make India its export hub once the BS-IV emission norms take effect in 2020. The firm has set sights to invest Rs 1,600 crore this year to launch new products and increase capacity. In fact, its fourth Indian factory currently being built it Karnataka will begin production this July.

“With sales of scooters growing at a faster pace than motorcycles, HMSI will have an edge over bigger rival and former partner Hero MotoCorp Ltd,” said Nitesh Sharma, an analyst at Phillip Capital India Ltd.

“Even as Honda is unlikely to dent Hero’s share in the motorcycle segment, where the latter has a dominant position, robust growth in the scooter market will help Honda increase share in the overall two wheeler market.”

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