Honda Motor Company made its two-wheeler leadership intentions quite clear at the Auto Expo here on Wednesday.

Takanobu Ito, President and CEO, formally announced the setting-up of the company’s fourth India plant in Gujarat, which will supplement the present units in Haryana, Rajasthan and Karnataka.

The new facility, with a capacity of 1.2 million units, will be commissioned in the second half of 2015-16. Consequently, Honda’s total two-wheeler capacity will be 5.8 million units by 2016. The company had set itself a target of 10 million units by 2020 at the 2012 Auto Expo.

At present, Honda Motorcycle and Scooter India Pvt Ltd, the local arm of the Japanese company, is the second largest two-wheeler player in India. Its former ally Hero MotoCorp Ltd is the market leader.

Ito’s presence was a clear indication of India’s importance in the Honda roadmap. The company has made a strong comeback in cars, too, with the order book for the Amaze and the new City growing by the day. The new launches in the coming months will include the Mobilio and the new Jazz.

The diesel engine option, which was introduced in the Amaze, has played a big role in the revival script.

At a round-table with journalists, Ito predictably did not get into the specifics on investments and products. Keeping him company during this interaction were the CEOs of the Indian car and two-wheeler arms.

The point Ito repeatedly made was that this country was a robust market for two-wheelers and it was important to bring products that worked with the customer. Likewise, vehicles like the Mobilio that clicked in the Southeast Asian region were expected to do well here.

Clearly, from Honda’s point of view, the future growth for cars will come from the Asia-Pacific region.

Related Topics
comment COMMENT NOW