Swaraj Baggonkar Moneycontrol News
Honda Motorcycle and Scooter India (HMSI), the second largest two-wheeler maker in India, is working on a whole new engine platform that promises to deliver a jump of at least 10 percent in mileage.
The company also rolled out a loyalty programme on October 11 under the brand Joy Club for its 39 million customers.
HMSI Minoru Kato, President and CEO, HMSI spoke to Moneycontrol on the sideline of the launch.
Edited excerpts.
Q. The 125cc segment has started to gain traction. What will be Honda’s participation in this?
A. From a product lineup efficiency point of view, we have Activa 125 and Garzia 125. I think it is enough for the time being. In future, we must consider possibilities, including a 150cc scooter. That will be our next stage. We are focusing on BS-VI preparation currently and bigger scooters will be our focus after that.
Q. We hear that there will be some significant changes in the BS-VI products of Honda in areas such as mileage and features.
A. Regarding new features I can’t elaborate on it. But thanks to BS-VI regulation such as fuel injection PGMFI our new engine platform will deliver new customer value not only in mileage but performance-wise too.
Q. And this new platform of the engine will be seen on scooters and motorcycles both? And what will be the increase in mileage?
A. It will be seen on 110cc and 125cc scooter and motorcycles. At least 10 percent increase in mileage can be expected, that is our target.
Q. Royal Enfield bikes have performed extremely well. When do we see Honda getting there with a challenger?
A. That is one of the big challenges for us. We have been doing customer survey and product development. As of today, I am sorry to say, we don’t have anything concrete to say.
Q. Cliq and Navi have been performing poorly. Does it make business sense to continue with them?
A. You can expect a new announcement.
Q. Do we have a sales target set for this year?
A. As we mentioned we expect double growth as a target.
Q. Exports has been going pretty well. What is the target ahead?
A. Bangladesh has been one of the biggest customers for us. The industry is about 300,000 but in future, it will touch 1 million. We will have a new factory there but it will be set up by another company not us. Until then we will supply to that country.
Q. What is the export share currently in total production?
A. Currently, it is 5 percent and in the future, it will remain the same.
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