Honda to invest Rs 800 cr this yr

Two-wheeler manufacturer Honda Motorcycle and Scooter India (HMSI) has earmarked an investment outlay of Rs 800 crore for 2018-19, as part of its expansion strategy.

"India is already the top contributor to Honda's global two-wheeler business. Our record sales have set a solid foundation in 2017-18, and Honda 2wheelers India will further consolidate its position in 2018-19, as we get ready to lead the biggest paradigm shift of 2020," HMSI President and Chief Executive Officer Minoru Kato said.

Moving ahead with the same momentum on the back of customer demand, the company wiill invest close to Rs 800 crore, as it aims for double-digit growth for the third consecutive year in a row as well, he said.

It must be noted that last year, Honda created a world record by becoming the only company in the world to add a million incremental sales in a single year.

In 2018-19, the company has revealed that it would launch one brand new model, while there are 18 upgrades of existing products in the pipeline.

The company, which is already the top contributor to parent Honda's global two-wheeler business, currently has four manufacturing plants in the country with an installed capacity of 64 lakh units per annum.

The company would also push its network expansion, with an aim to reach 6,000 touch-points with a key focus on the hinterlands. The Honda Best Deal pre-owned two-wheeler sales network will expand to 250 touch-points this year.

New plant

Meanwhile, HMSI is also mulling its fifth manufacturing facility after 2020, to cater to expected spurt in demand for its products, although the location and timeline for the same are unclear.

Led by strong demand in both domestic sales and exports, Honda's sales apexed at 6,123,886 units, with 22% growth, last fiscal.