Honda Motorcycle eyes to sell 6 million units in FY17-18

Chennai: Japanese two-wheeler major Honda, backed by additional capacity at its Karnataka factory, has set a target to sell six million units in the current fiscal,a top official said on Monday.

The country's second largest two-wheeler sold about 50.08 lakh units during the corresponding period last year.

Early this month, the company ramped up production at the Narsapura factory in Karnataka by adding 0.6 million units, Honda Motorcycle and Scooter, Senior Vice-President, Sales and Marketing, Yadvinder Singh Guleria said.

"Against the industry growth, we have been growing rapidly. Compared to last year this year we have set a target of six million units. We have also expanded our factory in Narsapura, (Karnataka). This will also add to our total sales (volume)", he told PTI.

Stating that the company has been growing 20 per cent Year-on-Year, he said the cumulative sales volume stood at 50,08,230 units in last year (FY2016-17).

To a query on which states were driving sales volumes, he said after Uttar Pradesh, Maharashtra and Tamil Nadu were the largest market for the company.

After Karnataka, Kerala and Telangana, he claimed Honda was ranked top in Tamil Nadu, considered the third biggest two wheeler market.

The five southern states contribute 28 per cent of over all two-wheeler industry with Honda holding 35 per cent market share.

Honda Motorcycle and Scooter India, President and CEO, Minoru Kato, who unveiled the 110 CC scooter 'CLIQ', said the company was in discussion with various stakeholders, including the central government on electric vehicles.

"At the moment, we have started discussions with various stakeholders (including the centre) on how to accelerate this area to meet government's commitment of all electric vehicles by 2030. But as of now no concrete plans", he said to a query.

The new CLIQ has been launched after it was unveiled in Jaipur (Rajasthan), Pune (Maharashtra) and now in Chennai (Tamil Nadu), he said.

CLIQ is priced at Rs 44,524 ex-showroom (Chennai).

On exports, Guleria said it was doing well with market revival in countries like Latin America and SAARC nations.

A company statement said that in FY2016-17, Honda's exports grew by 42 per cent to 2.83 lakh units. From April till July 2017, the company has shipped 1.14 lakh units, the statement said.

On network expansion, the company said it planned to add 500 new touch points in the current fiscal with the focus in 'semi-urban' and 'rural areas'. As of FY2016-17, Honda had 5,200 touch points, it added.