Honda eyeing Bajaj, Hero's lunch; aims 43% growth in FY14

Moneycontrol Bureau

After increasing its market share by 5 percentage points in FY13, Honda Motorcycle & Scooter India is aiming to sell 39.3 lakh units this financial year, a 43 percent growth in volumes.

This will intensify the competition in the two-wheeler segment at a time when demand has been slack, posing a headache to rivals like Hero Motocorp and Bajaj Auto, which are already grappling with slower sales.

Also read: Hero MotoCorp reports 11% fall in sales

In an interview with CNBC-TV18, YS Guleria, Vice-President, sales and marketing, HMSI said the company would not have to resort to a price war to boost sales, because of the strong brand name.

Guleria said the company will increase capacity by 1.2 lakh units this financial year, adding that last year's growth had been limited by capacity constraints.

After the capacity addition, the company will be able to roll out 40 lakh units a year. Guleria said the company has an aggressive pipeline of new launches in both scooter and motorcycle segments this year, adding that it has been seeing a strong demand for its products.

Guleria said his company will launch another 100 cc motorcycle soon. In the scooter segment, Honda has a market share of 50 percent, which it is planning to increase this year.