Track08With forecast of a normal South-west monsoon and recovering bike sales after the effects of demonetisation, two-wheeler makers are lining up strong capex plans and a slew of new product launches to drive growth this fiscal.
Hero MotoCorp, Honda Motorcycle and Scooters India (HMSI), TVS, Motor and Bajaj Auto will have combined investments close to ₹5,000 crore, including on capacity expansion.They will also roll out a dozen new products across bike and scooter segments.
The two-wheeler market is projected to grow in single digit for this fiscal. However, HMSI expects to grow by 20 per cent, while TVS Motor seeks to achieve twice the industry growth.
Investment budget
HMSI has chalked out an investment budget of ₹1,600 crore. With its new six-lakh unit production line set to commence operations by July, the total annual capacity will reach 6.4 million units. The company has set a sales target of 6 million units (5 million in FY-17) for this fiscal with at least four new model launches.
“With increased capacity, new models introduction and aggressive network expansion, Honda will carry on its strong sales momentum during this year,” said YS Guleria, Senior Vice-President – Sales & Marketing, HMSI.
via 2-wheeler sales to surge on monsoon cheer, waning currency ban effects | Business Line
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