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HMSI aims to penetrate smaller cities

No matter whatever industry we talk about, sub-regional sales and service network come amongst the top priorities of the companies. Honda Motors and Scooters India (HMSI) too come in the same marketing domain. As per a senior official of the two-wheeler manufacturer, the company is planning to restructure the aforesaid two indispensable parameters to penetrate into smaller cities of the country.

The recent launch of the company, Honda Dream Yuga, was introduced to take care of the demands in smaller cities. The company expects a close to 50% domestic market share in the domestic sales with an anticipated success of the latest launch in smaller cities. All the company has to do is to just wait and watch the performance of the Dream Yuga in the smaller cities.

In fact HMSI’s President, Keita Muramatsu was spotted stating that the company would create 20 zonal offices under the five regional offices (Pune, Manesar, Bengaluru, Kolkata and Lucknow) to offer better sales and service network to its customers. It was during the press conference held on the occasion of inauguration of the first zonal office (Ahmedabad) that Muramatsu delivered the statement. Bhopal and Chennai are to be the next zonal offices of the two-wheeler maker.

HMSI aims to penetrate smaller cities

The company had been making headlines in the recent past. Earlier it was reported that HMSI’s upcoming facility in Narsapur (near Bengaluru) is to start functioning in 2013, which in turn will take company’s annual production count to 40 lakh units. Now increment (from production to sales) seems to be one of the priorities of the company, as the company has been reported to be expecting sales and service network to something around 2000 by the end of current economic year, compared to the existing around 1500.

After an investment of around Rs.1500 crores in the upcoming Karnataka-facility, the company has higher projected sales figures too. The company has now an expected sale of 27 lakh vehicles (including 14 lakh scooters) by the end of the current fiscal. During the last fiscal, the two-wheeler maker cataloged sales count of 21 lakh vehicles (including 12.5 lakh scooters). Company’s ace scooter, Honda Activa, is being expected to be a bigger player this year too. The company sold 10 lakh units of the scooter in the FY2011 and is expected to reach the 11 lakh-mark in the current fiscal. With the increase in demand of scooters with increasing raw-material costing at the same time, the company is to carry out redesigning and re-engineering of the auto-parts too.

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