Honda targets 5 million units sale in 5 years

After separation of India's numero uno two-wheeler company Hero and Honda, Honda Motors want to grab the Indian motorcycle market larger than what it has now. The company has decided to sale 5 million two wheelers in short time of 5 years. HMSI is the 100 percent subsidiary of Honda Motors Japan which is doing well in the market and ready to hold the target. To achieve the target, the company is attracting buyers with it's new launches that includes Honda CBR 250R and Honda CB Twister.

According to some media reports, HMSI is aiming to triple the sales within 5 years; at present, it has total production capacity of 1.55 million units pear year. The company is reported to set up its second facility in Rajasthan and after its production capacity might be 2.2 million per annum; the production in the facility to start from second half of 2011.

On the other hand, HMSI is planing to set its third production plant in the state of Andhra Pradesh to get the 5 million units per annum target within 5 years. It is expected that this facility will be opened by the end of this year.

According to the officials, the company to invest Rs. 10 million in the market to increase its production in the this short time. It is also planning to produce 250cc bikes in Indian facilities. Moreover, the company is working to spread its dealership network in Indian rural and town areas along with small cities.