Honda Seil Cars India on Thursday said it would invest Rs 200 crore (Rs 2 billion) in the next two years for indigenisation and aims a hefty over 65 per cent sales growth this fiscal.
"We will be investing Rs 200 crore primarily for more localisation. Part of the investment will be mopped up through internal accruals and part through borrowings. We also target to sell 22,000 units this year from 13,300 units last fiscal," H Yamada, CEO, HSCIL, told a news conference in New Delhi.
With the targeted sales, HSCIL would have a marketshare of 21 per cent in the mid size car category from 15.6 per cent, he said, adding: "We will have a 10 per cent marketshare by 2010."
Out of 22,000 units, mid-size car City should contribute 18,000 units, luxury car Accord 2,100 units and sports-utility vehicle CR-V 1,200 units, he said.
Ruling out any price hike, he said, "We will try to keep current prices as long as possible. Strengthening of rupee offsets increasing yen."
The company, which produces 106 units a day, has also started a feasibility study to augment production capacity by 2005-06 as the current capacity was sufficient enough for the next year.
