India is now the largest two-wheeler market globally, by volume, for Japanese automobile major Honda. Honda Motorcycle & Scooter India's (HMSI) volume contribution globally hit 32 per cent in the first quarter of this financial year. HMSI officials said the company's two-wheeler sales grew 20 per cent in the April-July period, as compared to 9 per cent growth clocked by the industry, with scooters growing 19 per cent and motorcycles growing 20 per cent including domestic sales and exports.
“India is also the biggest production hub now for Honda with a combined capacity of 6.4 million units compared to Indonesia which was earlier the largest at 5.8 million units,” said senior VP marketing and sales HMSI, YS Guleria. He added, “Overall rural markets contribute around 28-30 per cent of Honda's sales with 20 per cent of scooter sales coming from these markets.” Other than rural markets, focus is also on the 5 southern markets which account for 28 per cent of two-wheeler sales, and 43 per cent scooter sales, countrywide.
President and CEO, M Kato said, “We have a strong intention to enter this segment in the near future. We have been considering how to enter it with the right product and compete from the cost and price point because competition enjoys high cost competitiveness.”
