Honda Motorcycle India Looks to Expand

Honda India plans to expand capacity to meet the company's annual 20 percent increase in demand, a Honda official said today. However, he gave no details on the investment or the additional capacity.

"We are doing an internal study on a second plant," said Shinji Aoyama, president and chief executive of Honda Motorcycle & Scooter India Pvt, which will reach its full capacity of 1.5 million units in 2010-2011.

"We cannot let our sales stagnate, we will take a decision soon," said Naresh Kumar Rattan, marketing and sales head.

India is the world's second-largest market for motorcycles and scooters, with annual sales of slightly over 8 million units. More than 15 million units are sold annually in China. Honda Motorcycle expects to sell 1.25 million scooters and bikes in the current fiscal year that ends in March, and 1.5 million units next year.

Last December, unlisted Honda Motorcycle made its entry in the popular 100cc bike segment, taking on Hero Honda in which Japan's Honda has 26 percent and India's Munjal family about 29 percent.

The company expects sales to rise 20 percent, powered by 110cc CB Twister bike, its first offering in this category that will compete with Hero Honda's Passion and Splendor and Bajaj Auto's Discover DTSi.

The 190 mpg machine was inspired by the Honda CB1000R in design, only powered by a 110 cc engine, delivering just 9 bhp. Tubeless tires, maintenance free battery, viscous air filter, short muffler and half chain are just a few attributes of Honda’s latest machine. The CB Twister is available in five colors, namely Yellow, Green, Black, Red and Blue.