Hero Honda, market leader in the motorcycles segment with 37.6 per cent market share in the last fiscal, plans to launch two new bike models in the next few years and also plans to expand the number of dealers and service points by about 50 per cent, top company officials said here.

The company, a joint venture between Honda Motor Company of Japan and Hero group of India to produce four-stroke motorcycles, also aims to increase its share by 1 per cent to 38.6 per cent during the current fiscal, officials said.

Hero Honda has decided to increase its dealer network from 350 at present to 450 and plans to enhance the number of authorised service centres from 110 to 200 in the next three years, they said.

It is also concentrating on improving after-sales services and intensify the normal marketingexercises and ad-promotion programmes.

According to Hero Honda officials, the company had largest share of about 38 per cent in the motorcycles segment during 1998-99 followed by Bajaj Auto (27 per cent), TVS Suzuki (19 per cent) and Escorts Yamaha (13 per cent).

The company would concentrate further to increase its sales volume in the north where it has a market share of 37 per cent, they said.

Competition in the southern and western parts of the country is very tough. It has a strong presence in eastern part. Therefore, a limited scope for expanding sales was available in these regions, sources said adding main concentration would be in the northern market.

Hero Honda is a market leader in all the four parts of the country as it has a market share of 37 per cent in north, 35 per cent in east, 38 per cent in west and 39 per cent in south, sources claimed.

It has targeted to sell 6.62 lakh vehicles during the current financial year, 25 per cent more than the sales realised during 1998-99.

Thecompany had sold 5.30 lakh vehicles during 1998-99 fiscal.

During the first quarter of the current fiscal, net profit of Hero Honda jumped sharply by 68 per cent to Rs 38 crore during the first quarter of the current fiscal from Rs 23 crore in the same period last year.

The turnover of the company went up by 51 per cent to Rs 489 crore in April-May of the current fiscal against 324 crore in the corresponding period of 1998-99. During the first quarter of 1999-2000, Hero Honda sold 1.61 lakh motorcycles as compared to 1.13 lakh units sold in the same period last year, recording a growth of 42 per cent. Hero Honda enjoyed a market share of 42 per cent in the first quarter of the financial year against 38 per cent share during the full year 1998-99, the release said.

The company has targeted to achieve a turnover of Rs 2,000 crore by the year 2000, sources said. During 1998-99, motorcycles overtook scooters to emerge as the largest product segment with a 41 per cent share of the two-wheeler market.Motorcycle segment registered a growth of 23 per cent in the last fiscal.