Japan's Honda Motors on Wednesday unveiled its second bike -- 125-cc 'Shine' -- in the Indian market and said it will invest Rs 400 crore (Rs 4 billion) over the next three years to more than double its production capacity to two million units by 2010 to corner a 20 per cent share of the two-wheeler market.
Honda Motorcycle and Scooter India, the fully-owned Indian subsidiary of Honda, said it hoped to sell 1,70,000 units of the new bike in the 12 months beginning April 1, 2006.
The company has priced the bike, which will be competing with market leader Hero Honda's models like 'Super Splendor' and 'Glamour', Bajaj Auto's 'Discover' and TVS Motors' 'Victor GLX', at Rs 45,120 (on-road Delhi) and Rs 47,065 (disk brakes version).
"Our aim is to become one of India's top three two-wheeler manufacturers by 2010. For this, we will be launching new innovative products in the Indian market over the coming years, both in the scooter and motorcycle segments," HMSI president and CEO Y Aoshima told reporters in New Delhi.
The profitable company, which has so far invested Rs 700 crore (Rs 7 billion) in its Indian operations and enjoys an eight per cent market share primarily due to its dominance in the scooter market, will be pumping in an additional Rs 400 crore (Rs 4 billion) for increasing capacity and new model launches.
"We are currently studying. It is too premature to disclose," Aoshima said, when asked whether the company could go in for a new location for capacity addition.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
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