Expect sales to grow 43% at 39.3 lakh units in 2013-14: HMSI

The company sold 27.54 lakh units in 2012-13.

Updated: Apr 02, 2013, 16:11 PM IST

New Delhi: Honda Motorcycle & Scooter India (HMSI) on Tuesday said it expects sales to grow 43 percent this fiscal to 39.3 lakh units on the back of new product launches and fresh production capacities coming in.

The company, which sold 27.54 lakh units in 2012-13, said its third plant in Karnataka is expected to be operational by the first quarter of the ongoing fiscal.

"In FY 13-14, HMSI aims an overwhelming 43 percent jump in its sales based on introduction of new products and rapid expansion in all fronts from production capacity to network and manpower," HMSI President and CEO Keita Muramatsu said in a statement.

In order to achieve its target, HMSI said it will add 500 outlets and expand its network to 2,500 sales and service touch points across India by FY'14-end.

On the new product launch, HMSI Vice-President (Sales and Marketing) Y S Guleria said the company "shall continue to surprise the market with innovative new products and raise the bar of mileage delivery in each two-wheeler segment" without disclosing details.

Last fiscal, the company had posted a growth of 31 percent selling 27.54 lakh units as against 21.07 lakh units in the previous year.

Motorcycle sales during FY'13 grew 49 percent to 12.92 lakh units as against 8.64 lakh units in 2011-12. Its scooter sales during the year stood at 14.63 lakh as against 12.43 lakh in FY12, up 18 percent.

The company is investing around Rs 1,000 crore for its third plant, which is coming up near Bangalore. It will have an annual capacity of 12 lakh units.

Once the plant becomes operational, HMSI's overall capacity in India will touch 40 lakh units annually. It currently has two plants, one each in Harayana and Rajasthan.