HMSI to invest almost Rs 800 cr in 2018-19

New Delhi : Honda Motorcycle and Scooter India (HMSI) on Tuesday said it has earmarked an investment outlay of close to Rs 800 crore as part of its plans for financial year 2018-19.

The two-wheeler manufacturer said it aims for a third year of double-digit sales growth in 2018-19 after its 22 per cent growth last year.

"In the pipeline from Honda during this fiscal are be one brand new model and 18 exciting upgrades of existing products," the company said in a statement.

In addition, HMSI said it will further expand its network reach to 6,000 touchpoints by the end of the fiscal with key focus on hinterlands.

"Our record sales have set a solid foundation in 2017-18 and Honda 2-wheelers India will further consolidate its position in 2018-19 as we get ready to lead the biggest paradigm shift of 2020," said Minoru Kato, President and CEO, HMSI in the statement.

"Moving ahead with the same momentum on back of customer demand, we will invest close to Rs 800 crore as we aim for double digit growth for the third consecutive year in a row as well," he added.

The company said as part of future preparedness before the "big jump" to new BS-VI norms in 2020, its cross-functional BS-VI task-force from sales, engineering, research and development (R&D), purchase and quality is pro-actively working on the primary objective of strengthening quality, product planning with cost competitiveness.

"Internally, Honda has initiated the modernisation and unification of production constitution across all plants. This move will help Honda reap the benefit of higher productivity with efficiency and match product quality to world standards," the statement said.

Externally, Honda has pro-actively announced its BS-VI roadmap with its suppliers to ensure a smooth and timely product portfolio upgradation, it added.

"2017-18 was a historic year for Honda in more than one way... Led by strong demand in both domestic and exports front, Honda's sales apexed at 6,123,886 units with 22 per cent growth," said Yadvinder Singh Guleria, Senior Vice President - Sales and Marketing, HMSI in the statement.

"Honda successfully consolidated leadership further in scooter segment while aggressively gaining new motorcycle customers. The aggressive launch of four brand new models, new capacity infusion and addition of 500 new outlets propelled Honda's growth story further and set the solid foundation for future growth," he added.