Honda enters in used two wheeler business

Honda Motorcycle and Scooter India (HSMI), an arm of Japan based Honda Motors, has entered in used two-wheeler business as Maruti. The company has already announced that it aims to be number one in Indian two-wheeler market within one decade or in year 2020. To grab the Indian motorcycle market, the company is decided to bring an entry-level 100cc bike by the end of this year.

HMSI has recently launched its semi-sports bikes Honda CBR 250R in the Indian market which is an answer to Bajaj Pulsar, TVS Apache, Hero Honda Karizma and Kawasaki Ninja 250R. With the launching of this popular model, the company got buzz response from customers, the bike will be available in the month of April this year.

It is pretty clear that Honda has dissolved from Hero Honda JV and it will get profit of 80 billion yen ($986.9 million) after selling its 26 per cent stake to Hero Group. Now the company is planning to invest this huge money to improve HMSI's production and network across the country.

Now Honda has also entered in the used two-wheeler market with opening of five ‘Best Deal’ outlets in Bangalore, Delhi, Thane, Ahmedabad and Punjab which will purchase and sell out used Honda Two Wheelers. With it, the company will provide six month warranty on the two-wheelers. Honda hopes that with the starting of this new business, it will get good profit and from the after sales service and genuine spare parts sales as well.

The president and CEO of HMSI is going to change with Keita Muramatsu which has a long experience of two-wheeler market, he will join the company from Aril 1st this year. He will work with new strategy to provide new height to the company. And to increase the production capacity of two wheelers, HMSI's second facility which is in under production at Tapukara in Rajasthan will start operation before the end of this year.