India has now surpassed Indonesia and has become the largest two wheeler market globally, by volume, for Japanese automobile major Honda. Honda Motorcycle & Scooter India’s (HMSI) has carved out almost 1/3rd of Global share making it the highest ever till date.
According to top HMSI officials the company’s two wheeler sales grew 20% in the April-July period, the major reason of this sudden splurge is the Supreme Court’s notification banning the sale of BS III vehicles which saw public rushing to the showroom like crazy since the vehicle prices by then were slashed by almost 50%
The scooter segment grew by 18% and motorcycle segment grew by 20% that included domestic sales and exports.
“India is also the biggest production hub now for Honda with a combined capacity of 6.4 million units compared to Indonesia which was earlier the largest at 5.8 million units,” said YS Guleria senior VP marketing and sales HMSI.
With this splendid performance, India has become Honda’s largest motorcycle market globally in FY16-17 dethroning Indonesia. However the South East Asian nation still continues to be Honda’s biggest scooter market globally.
“We have a strong intention to enter this segment in the near future. We have been considering how to enter it with the right product and compete from the cost and price point because competition enjoys high cost competitiveness,” said M Kato president and CEO HMSI since they are planning to enter into 250cc segment which is currently dominated by Royal Enfield.