HMSI has listed the expectation of GST reduction by customers and wait for bigger discounts on BS4 vehicles as contributions to the decline in sales.
Honda Motorcycle and Scooter India (HMSI) has held the current economic slowdown in India responsible for the slump in 2-wheeler sales. The tumbling numbers are expected to hit a new low with vehicle prices set to go up due to the BS6 transition next year.
HMSI President, CEO and MD Minoru Kato has also listed expectation of GST reduction by customers and wait for bigger discounts on BS4 vehicles as contributions to the decline in sales. While HMSI has not given up its aim to be the number one 2-wheeler manufacturer in India, it accepts that times are going to get tougher for the industry.
Honda has also announced that the construction of its 4th plant in Gujarat is on schedule and not held back in terms of investments due to the ongoing slump. However, the operation of the product line will depend on market conditions. As of now, the brand has a total production capacity of 6.4 million units per annum and is targeting 7 million by the mid of the next fiscal.
Honda has apparently invested Rs. 2400 crores for the shift to BS6, and promises that all of its 16 2-wheeler models of the company will be ready when the new emission norms kick in on 1st April 2020.
Even when a lot of manufacturers are accepting electric mobility, HMSI has no plans to launch electric vehicles in India.
Falling 2-Wheeler Sales
– HMSI has held the current economic slowdown in India responsible for the slump in 2-wheeler sales
– Has invested Rs. 2400 crore for the shift to BS6
– At present, has no plans to launch electric vehicles in India
