NEW DELHI, India, July 3, 2006 – Takeo Fukui, President and CEO of Honda Motor Co., Ltd. announced plans to strengthen its business structure in India.
- In cooperation with its business partners in India, Honda has established a solid business foundation in India since 1984 when a motorcycle joint venture was established. Over the past 20 years, we have been committed to achieve steady progress in growing all our businesses in India.
- The Indian two wheeler market has reached 7 million units. Of that total, 3.6 million units are accounted for by Honda brand two wheelers sold by Hero Honda Motors Ltd. and Honda Motorcycle & Scooter India (Private) Ltd. This is the largest number of two-wheelers Honda sells in any single country in the world.
- In our automobile business, the annual production capacity of Honda Siel Cars India Ltd. was expanded to 50,000 units at the end of last year. And by the end of next year, we will double this annual capacity to 100,000 units.
- The total scale of business of Honda’s four companies, including power products sold by Honda Siel Power Products Ltd., is one of the highest of any Japanese investment in India.
- Moreover, combining the sales of all Honda products together, we are meeting 3.8 million customers a year in India. That means India has the second largest number of customers who love and support Honda products in the world, next only to the United States.
- Importantly, the effort to strengthen the foundation for growing overseas markets like India is one of Honda’s three key global strategies, together with strengthening the foundation of our business in the U.S. and Japan, and enhancing Honda’s leadership commitment to protect the environment.
- Among all the world’s growing markets, India is one of the most important business areas for Honda, with the highest growth potential.
- On July 4, Honda will introduce the third production car in India, the global model, Civic. Civic is expected to further strengthen the Honda business platform in India.
- Mr Masahiro Takedagawa, an Operating Officer of Honda, is taking helm of a new Parts business company, Honda Motor India (Pvt) Ltd, along with his current responsibility as the president of Honda Siel Cars India. Moreover, he will coordinate the three Honda businesses in India - namely, two-wheelers, automobiles, and power products, in order to make the best business strategy suited for India.
- Honda’s aim for automotive sales figure in 2010 is expected to exceed 150,000 - three times the current level of 50,000.
- In addition to expanding the sale of existing models, Honda already has begun investigation for a new model, smaller than CITY ZX.
- Honda firmly believes that India will continue to grow.