Hyderabad: India’s second largest two wheeler maker by volume, Honda Motorcycle and Scooter India (HMSI) plans to ramp up its presence in rural India. Speaking on the sidelines of launch of updated variants of Aviator and Activa i here in Hyderabad on Wednesday, HMSI’s SVP (sales and marketing) Yadvinder Singh Guleria said, “Lack of network has been a deterrent in these areas.
However, we have been expanding rapidly as we plan to open 800 new networks (dealerships and other outlets) this year. Of which, rural India will constitute about two-thirds of the network Last year, we had opened 1,000 networks.”
Currently, rural sales contribute 25 per cent to 30 per cent of Honda’s total sales volume. The company plans to increase its production capacity with commissioning of its fourth plant in Amhedabad by early 2016. This will add 1.2 million units to Honda’s total capacity which was 4.6 million in 2013.
The company also plans to invest Rs1.2 billion as capex in ramping up its production and also lending flexibility to its production units so the shift in production from motorcycles to scooters is smooth.
