HMSI to make India export base

New Delhi, Aug 8: The Indian arm of Japanese two-wheeler giant Honda Motor Company has said that it would make the country a global export base besides launching geared scooters, scooterettes and 100-110cc motorcycles in the domestic market.

“We will make India an export base for two-wheelers. Exports should account for 10 per cent of our total production from fiscal 2004,” Honda Motorcycle and Scooter India (HMSI) president and CEO, Haruo Takiguchi said.

HMSI is Honda’s fully-owned subsidiary and would commence sales of its first product, a 102cc automatic scooter ‘Activa’ all over the country from August 17.

Mr Takiguchi said the company expects to export 1,500 scooters to neighbouring countries like Sri Lanka, Bangladesh and Nepal in this financial year.

“In the next fiscal, we will commence exports to Japan and USA besides Latin America, Turkey and Mexico,” he added.

HMSI would launch two new scooter models, including geared scooters over the next two years, after which it would venture into the growing motorcycles segment, Mr Takiguchi said.

“We will produce basic entry level (100-110cc) motorcycles initially,” he said adding this would ensure the company to garner volumes in the competitive domestic market.

He, however, said new models like the ‘activa’ would be exclusively developed for the Indian market rather than sourcing models from the parent company’s stable.

HMSI has set up a plant at Manesar (Gurgaon) in Haryana with an initial production capacity of one lakh units by investing Rs 200 crore.

“The production will be doubled over the next two years,” Mr Takiguchi said but declined to give investment details.

He said the company would produce about 45,000 units this fiscal which would be hiked from April 2002.

“We should achieve breakeven by selling about two lakh scooters in fiscal 2004,” Mr Takiguchi said.

Asked whether the company would get listed on the Indian bourses, he said “we want to remain a 100 per cent subsidiary of Honda”.

He, however, said the Japanese parent may discuss offering equity to Munjals-family promoted Hero Group in HMSI.

“We have not discussed the issue of equity with the Hero Group till date. We may discuss it like all other issues but we would like HMSI to remain a 100 per cent subsidiary as of today,” Mr Takiguchi said.
Honda and the Hero Group, each owns 26 per cent of India’s largest motorcycle maker - Hero Honda Motors Ltd.

-- PTI