Japanese auto major Honda on Wednesday said it is not looking to match erstwhile partner Hero Honda’s production capacity in India, and would chart its own course towards realising its dream of emerging as India’s leading two-wheeler manufacturer.
After its divorce from the Hero Group controlled by the Munjals last December, the Japanese firm has been flexing its muscles in the country. On Wednesday it inaugurated its second plant in Rajasthan, which will double its capacity, and also said it is finalising plans for a third plant in Karnataka.
“My aim is to improve our product and service quality and not so much the number game,” said Keita Muramatsu, president and CEO, Honda Motorcycle and Scooters India (HMSI). “If our products are right and the consumers are happy, we will automatically achieve whatever targets we set.”
Muramatsu’s predecessor Shinji Aoyama had said HSMI was aiming to be number one in India in the next decade. Currently, Hero Honda with its 6.15 million unit capacity holds that position.
“I am not bothered with the capacity of Hero Honda, Muramatsu said. “What I am more interested is how we grow. Currently we are at number four, we have high possibility of improving. ”
HSMI’s second plant at Tapukara in Rajasthan will have a total annual capacity of 1.2 million and entail an investment of R860 crore. Its current plant at Gurgaon has an annual capacity of 1.6 million units. The planned third plant in Karnataka will also entail an investment of R1,000 crore; it will have an annual capacity of 1.2 million units by 2013. Together, Honda will then have a capacity of 4 million in the country.