Honda India’s Mission 2020

Japanese bike manufacture Honda's Indian wing has set a tough and ambitious target of selling 10 million units annually by 2019-20. The company's strategy has been very aggressive since their split with Indian auto marvel Hero MotoCorp, and they are launching new bikes at regular intervals.  Now, the company plans to accelerate the rate of new model launches and at the same time lowering prices of the products by increasing localisation levels. For this, they are going to hire up to 4,000 people for its third plant in Karnataka. Speaking on the same, HMSI President and CEO Keita Muramatsu said, "With our third plant coming up in Karnataka, in fiscal 2013-14 we will have a total production capacity of four million units. In the long term, the target is to have a capacity of 10 million units by 2019-20."

When asked how many plants would the company need  in order to meet the envisaged target, he said based on its current capacity, "about seven to eight plants" will be required.  Honda's erstwhile partner Hero MotoCorp has already announced its intention to have $10 billion turnover in the next five years with sales of 10 million units, comprising 10 percent exports of the total sales. HMSI's Manesar plant has a capacity of 1.6 million units annually, while that of the Tapukara plant is 1.2 million. The upcoming plant in Karnataka will have the capacity of producing 1.2 million units per year initially. 

Muramatsu declined to comment on the investments required to meet the company's long term target, saying the current focus is on the third plant in Karnataka, which is expected to start production by the first quarter of FY14. The company is investing Rs 1,500 crore on the plant.  HMSI will hire 3,000-4,000 people for the new plant, Muramatsu further said, "when all the three plants are operational the company will have a total of 13,000-14,000 workers".

Source: ET