Two-wheeler manufacturer Honda Motorcycle & Scooter India (HMSI) is revamping its Karnataka facility, from where it plans to roll out the 125-cc motorcycle CB Shine amid rising demand for the model.
The company, which is a wholly owned subsidiary of Japanese auto giant Honda, currently manufactures the model at its Tapukara plant in Rajasthan.
"It is a strategic decision taken by the company. In order to cater to the demand for the CB Shine, we are coming up with changes in our Bangalore facility. So CB Shine will become the fourth model to roll out from the Bangalore facility," HMSI Vice-President (Sales and Marketing) Y S Guleria told PTI.
The Karnataka plant, which has a production capacity of 12 lakh units a year, currently makes the Dream Series motorcycles and Activa scooters.
Guleria said there has been some production loss due to the changes being made at the Karnataka plant.
"In FY13-14, our target is to sell 39.3 lakh units. Due to changes being affected at the Karnataka plant, we may not be able to achieve the target. But it is going to be very, very close," Guleria said.
The company sold 27.55 lakh units in FY 12-13. Until December, HMSI's production capacity stood at 40 lakh units across its three plants in the country.
"By March 2014, we plan to hike the production capacity to 46 lakh units," Guleria said.
Asked if the company is looking at setting up a fourth production facility to cater to increasing demand, Guleria said: "Yes, we are considering it." HMSI has 2,500 outlets and is aiming at expanding its
network and entering tier-III cities.
"By March 2014, we aim to have 2,700 outlets. We are focusing on tier-III towns as we think we are under-represented at the tehsil level," Guleria said.
The company, which posted sales growth of over 30 per cent in April-December, today entered into an association with Pogo channel to promote road safety among children.
"HMSI has further built its commitment towards road safety by associating with Pogo and popular character Chhota Bheem. Honda, together with Chhota Bheem, shall spread the message on importance of road safety across the country," HMSI President & CEO Keita Muramatsu said.