Honda is going great guns and is really thinking of becoming one of the top brands in Indian automobile market . As per the latest news development, Honda plans to triple its sales figures in India by the year 2016. They have futuristic ideas and higher goals set for themselves in the near future.
Honda has recently signed a MoU with the Hero Group to eventually end their joint venture. As a matter of fact, Honda has planned to increase their sales to 5 million units a year by 2016. According to the news, this move from Honda is to compensate for their broken joint venture with Hero group.
According to Japan’s Nikkei Business Daily, Honda has got a step by step plan to increase the production of its Indian subsidiary Honda Motorcycle and Scooter India (HMSI). Honda is recently out of joint venture with Hero group and will redirect their resources from Hero Honda to HMSI; this will help them with accumulating working capital to increase their production. Honda plans to increase their production capacity over the next 5 years so that they could accomplish their target of selling more than 5 million units a year by 2016.
Presently Honda produces 1.55 million units a year out of their facility at Haryana. Honda is also planning to kick start a second facility at the state of Rajasthan with a planned production capacity of 6, 00,000 units for 2011. Another plant at Andhra Pradesh is also under scanner.
All in all, Honda has decided to meet its target of selling 5 million units a year by 2016. This move is surely going to receive a lot of appreciation because people now prefer Honda over other brands. Also, Honda’s hopes are high with the latest CBR 250R on cards. We will have to wait and find out if Honda succeeds in its intentions of taking over Indian motorcycle market.