Honda aims for two-wheeler leadership in India
22 March 2011
According to analysts, Honda Motorcycle & Scooter India (HMSI) appears to be in no rush to grab market share, despite there being a company like Hero Honda Motors for competition.
Though in line with Japanese philosophy, Honda's two-wheeler business in India is in a ''step by step'' growth mode, there are no indications of the quantum of investments planned for the near future.
Honda's service network, only a fourth the size of Hero Honda's and with a single product in the 100-110cc space stands in sharp contrast against Hero Honda which is a well-acknowledged leader in the entry-level bike market.
The company's presence in semi-urban and rural areas is marginal as against Hero Honda which has a strong presence in these territories.
According to chief executive officer Shinji Aoyama, the semi-urban and rural markets contribute to about a third of bike sales for the company now with two-thirds of sales coming from urban areas. He said the situation was expected to be reverse in the coming decade when semi-urban and rural areas will account for two-third of bike sales.
He added HMSI needed to scale up its presence in these markets where it has neglibile presence.