India set to become No. 1 market for Honda

  • Nov 6, 2015
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A top Honda executive has said that fast paced growth for Honda two wheelers in India, and a slowdown in Indonesia may lead to India becoming the top market for Honda two wheelers

2015 Honda Activa 3G

India may become the No. 1 two wheeler market for Honda by next year, a top Honda executive has said.

This is because sales in Honda’s top market Indonesia, are dropping, and Honda is expanding at a fast clip in India. Honda’s performance in India, as well as in neighbouring countries such as Pakistan, Bangladesh and Myanmar, is key to achieving its target of selling 20 million units by 2020. This is particularly important since key motorcycle markets like Vietnam, Indonesia and Thailand are becoming sluggish.

“India is the most important and biggest market,” Shinji Aoyama, Chief Operating Officer of Honda’s motorcycle business, said in an interview on the sidelines of the Tokyo Motor Show.

By 2020, Honda expects India to drive its sales with volumes of 7-8 million two wheelers.

“This financial year, India will catch up with Indonesian volume of 4.5 million units. Then next year, it may overtake as the Indonesian market is seeing a decline in sales,” Aoyama said.

Honda’s two wheeler arm in India, Honda Motorcycle and Scooters India have tripled their sales volumes in the last four years to 44.5  lakh two wheelers in the fiscal year 2015. By 2017, HMSI plans to increase sales to 64 lakh units.

Aoyama, who led HMSI from 2007 to 2011, said the company’s aim is to become the market leader in India, but added that he isn’t sure by when. Currently, Honda’s former partner, Hero MotoCorp is leading the Indian market, with Honda trailing in second, though Honda is trailing by a considerable margin.

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