Honda Motorcycle and Scooter India Pvt. Ltd, says to India Biz on Thursday it has now turned profitable. Honda Motorcycle India is a subsidiary of Japan’s Honda Motor Co. Ltd. It also told India Biz that their target in 2009-10 is to maintain 17% sales growth.

Honda Motorcycle president and CEO Shinji Aoyama said after launching a new version of the CBF Stunner, a 125cc motorcycle, in Bangalore, “Business is getting better, but our profits are not as big as our competitors like Hero Honda (Motors Ltd) or Bajaj (Auto Ltd)”. Shinji Aoyama denied revealing the profit amount or when the company broke even in India.

Honda has entered in India in 2001. Honda, the maker of the Activa scooters and Unicorn bikes a leading company has invested around Rs. 900 crore in the country so far. Honda is having its factory in Manesar, Gurgaon with a yearly capacity of 1.2 million units and is planning to increase it to 1.5 million this year.

Honda Motorcycle has an aim far the annual sales of 1.25 million units in 2009-10, up from 1.07 million last year, said Shinji Aoyama. Honda Motorcycle’s annual sale was increased to 17.58% in 2008-09.

N.K. Ratan, operation head, sales and marketing, Honda Motorcycle said that “economy has had minimal impact on our two-wheeler business”.

The two-wheeler market is expected to grow at 7-8% this year, up from a 4-6% rise in fiscal 2009, as bank finance becomes more accessible said, Ramnath S., director, research, at brokerage IDFC-SSKI Securities Ltd. Ramnath said that Several banks had reduced and even exited two-wheeler financing (over the past two years). They are going easier now. He added, “Firms such as Honda Motorcycle may do even better with their scooters and new models.”  In this year end 31st March; 7.4 million units have been sold in India of the most popular mode of personal transport, two-wheelers.

In the terms of sold units, India is the fifth largest two-wheeler market for Honda’s motorcycles and scooters after Indonesia, Brazil, Vietnam and Thailand. With the more launches in the pipeline, including in the 100cc segment, Honda is growing its motorcycle business in India. 65% of the company sales made up by the scooter sale in the previous fiscal year.

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Posted by Amrith K.A on 6 June, 2009 5:08:14 PM IST #