Unlike the fluctuations in the four-wheeler market, the two-wheeler market in India is unlikely to be affected due to the economic woes, Mr Y S Guleria, Vice-President, Sales and Marketing, Honda Motorcycle & Scooter India Pvt Ltd (HMSI), said on Thursday.
The reason for the two-wheeler market being continuously bullish, he said, was the fact that while 80% of four-wheelers are financed to the consumer, only 30% customers of two-wheelers depend on such finance, he told reporters here after the launch of the company’s latest offering, Dream Yuga.
This means that more than two-thirds of Indian two-wheeler customers are able to buy the vehicle on their own, without depending on financial institutions.
Mr Guleria said HMSI is targeting to sell three lakh Dream Yuga in 2012-13.
The company’s new technology centre, commissioned with innovations, is expected to start at the Manesar complex in October this year.
Currently, the company’s manufacturing plants at Manesar (Haryana) and Tapukara (Alwar, Rajasthan) have annual capacities of 12 lakh units each. With the Narsapuram (Kolar, Karnataka) unit set to be operational in the first half of 2013, HMSI’s total capacities will be 40 lakh units per annum.
Honda India exported 1.1 lakh units in 2011-12 and expects to increase it to 1.5 lakh in 2012-13, out of the total production of 21 lakh units. While Activa scooter is its most popular product in India, CB Twister bike is its number one export from India.
Asked if the company would look at Gujarat as its next manufacturing destination, he said it would depend on HMSI fully utilizing its capacities and the market demand.