Underlining his vision to the select media in Mumbai on Thursday Kato said the business direction is to lead in India and the world with ‘quantity and quality.’
Having crossed a 5 million units annual sales milestone in FY-17, India’s largest scooter maker HMSI is targeting for incremental 1 million units in sales in FY-18 to touch 6 million units annual sales and inch closer to its erstwhile partner Hero MotoCorp, the largest two-wheeler maker in the country.
The company is targeting 20% growth in volume in a sluggish demand environment. To fund this growth, Honda Motorcycle and Scooters India will invest Rs 1,600 crore in new capacities and 4 new models it plans to launch in FY-18.
The new capacity of 6 lakh units will come on stream in July of 2017, taking the annual capacity of Honda Motorcycle and Scooter India to 6.4 million units by the end of FY-18.
“In 2016, Honda 2 Wheelers India became the number one contributor to Honda’s global two-wheeler business. The Indian market is on the cusp of its biggest ever paradigm shift. Honda’s vision is to build exponentially on our solid foundation. Our new business direction is to be leading India and the world,” said Kato.
As part of the new vision, Honda’s future preparedness, the focus will be on quality. The new organization structure is being put in place to manage a seamless transition to BS-VI. The task force is cross-functional from sales, engineering, R&D, purchase and quality and is working on the primary objective of strengthening the quality, product planning with cost competitiveness.
Once the BS-VI emission norms are implemented in 2020, Honda sees India becoming a significant export hub for the company penetrating even in the evolved markets of the world.