Japanese auto major Honda Motor Co on Wednesday said it is aiming to be the top two-wheeler manufacturer in India by 2020, overtaking erstwhile partner Hero MotoCorp.
According to Honda Motor Co Chief Officer Regional Operations (Asia and Oceania) Shinji Aoyama, the company will have a competitive advantage over rivals when India adopts the stringent BS-VI emission norms.
“Year 2020 can be a possible year to become number one,” Aoyama told the news agency here when asked by when Honda was aiming to take the top slot in Indian two-wheeler market.
Currently, Hero MotoCorp is the top player in the Indian two-wheeler segment. The two partners had parted ways in 2010 after 26 years of successfully running a joint venture -- Hero Honda.
At present, the company’s arm Honda Motorcycle & Scooter India (HMSI) has 59 per cent market share in scooters, while occupying number two position in motorcycles in India.
HMSI is targetting to sell 60 lakh units in the country in the current fiscal.
In 2016-17, Hero MotoCorp sold 64,83,655 units in the Indian market, whereas HMSI sold 47,25,067 units.
Elaborating reasons behind Honda’s confidence to claim top slot in India, Aoyama said the most important factor for 2020 is how manufacturers meet BS-VI norms.
“As far as Honda is concerned we are pretty confident with what we are going to do with BS-VI... I believe we can be more competitive than other brands. That is why we may have the potential to be number one,” he said.
When asked if the company has set a sales target in India by 2020, Aoyama said it was difficult to say as the industry may witness a dip in sales after 2020 as BS VI norms may lead to rise in product prices.
“The market may decline. We are not sure,” he added.
Aoyama said that it is going to be very difficult in the next 3-4 years to ascertain if the company would have to go for further hike in production capacity in India.