Two-wheeler maker, Honda Motorcycles and Scooters India Pvt Ltd (HMSI) on Thursday informed that the company has started exports of its two wheelers from Gujarat facility to Sri Lanka.
Senior company officials informed that HMSI has already shipped its first consignment of Honda Dio to Sri Lanka from Mundra Port in Gujarat.
"Two of our main export destinations are Nepal and Sri Lanka. To the Nepal market, we cater from our Manesar facility, while for Sri Lanka, we have started exports from the Gujarat facility, which was commissioned in February this year," said Yadvinder Singh Guleria, Senior Vice President - sales and marketing, HMSI.
In the first half of the current fiscal, 2016-17, HMSI has exported about 1.28 lakh units, out of which nearly 75 per cent is exported to Sri Lanka and Nepal, Guleria informed. In the domestic market, the company has sold about 26.73 lakh units in the first half with a growth of about 24 per cent year-on-year.
Activa in the scooter segment continues to be the company's largest selling model, with about 3 lakh units sold every month. Meanwhile, recently launched new kind of two-wheeler, Navi has received 'satisfactory' response from the urban youth.
"We had set a target to sell 50,000 units in a year. But by this month end we will be able to achieve it. The response is good and we now expect to achieve sale of 90,000 to 1 lakh units by the end of this year," said Guleria. The company makes Navi at its Rajasthan facility.
The company is also planning to invest around ₹ 400 crore for capacity expansion at Narsapur Plant in Karnataka to add 6 lakh units of production line to achieve total installed capacity of 64 lakh units per annum. "Currently, our Gujarat facility with 12 lakh units is running at full capacity. For Karnataka plant, we have already started construction, and it will be ready by mid of next year. This will attract an investment of about ₹ 400 crore," said Guleria.
HMSI has chalked out investment plans of ₹ 1350 crore for the current fiscal, while it had invested ₹ 1365 crore last year for capacity addition. Cumulative investment by the company has reached ₹ 8800 crore as per fiscal 2017.