Honda Motorcycle and Scooter India guns for double-digit growth despite challenges in Kerala, West Bengal
When asked about growth outlook for the ongoing fiscal in the backdrop of the developments, he said,"This fiscal we expect double-digit growth...We plan to stick to our target." Both Kerala and West Bengal contribute around 10 per cent to the company's overall domestic sales.
Honda Motorcycle and Scooter India (HMSI) expects to log double-digit sales growth in the current fiscal despite facing challenges in two of its prominent markets -- West Bengal and Kerala, a top company official said.
The company, which sold a total of 57.75 lakh units in the domestic market last year, is grappling with shortfall in sales in Kerala which has been ravaged by floods.
It is also impacted in West Bengal, like the rest of the industry, where the state government has made driver's licence mandatory for buying two-wheelers.
"There is a situation in West Bengal and Kerala and we have been struggling. But we have intention to recover in other regions," HMSI President and CEO Minoru Kato said in an interaction.
When asked about growth outlook for the ongoing fiscal in the backdrop of the developments, he said,"This fiscal we expect double-digit growth...We plan to stick to our target."
Both Kerala and West Bengal contribute around 10 per cent to the company's overall domestic sales.
On the company's plans to expand manufacturing capacity, Kato said the firm would take a call on capacity expansion "post 2020" after analysing the impact of BS-VI emission norms on sales.
Commenting on new product launches, he said HMSI plans to introduce one new product during the fiscal besides various upgrades of the existing models.
The company is also is conducting a survey to devise strategy for the fast growing 250-500 cc segment and would take a call accordingly, Kato said.
Regarding electric vehicles segment, he said the company is yet to finalise a plan.
"Still it is very difficult to meet customer expectations because of the high cost, battery, performance and range. It is very difficult. We have a plan but not concrete yet," Kato said.
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He, however, added that depending on the infrastructure development in the future, the company has a strong intention to follow government direction in the electric mobility segment.
"But as of today still it is very difficult to meet customer expectation. Not only in terms of product but also infrastructure," he added.