The Japanese firm, which dominates scooter section within the nation with merchandise like Activa and Dio, is now seeking to develop its footprint in rural areas with a brand new bike which might sit under its CD 110 vary, the corporate’s most inexpensive bike for the time being.
The corporate’s deal with filling the gaps in its portfolio to accumulate extra prospects stems from the underlying undeniable fact that with the implementation of BS-VI emission norms, profitability on every mannequin has come down, resulting in its evaluate of every mannequin line.
“This difficulty (dip in profitability) shouldn’t be just for HMSI, (however) for the complete trade. So due to this fact, we plan to evaluate mannequin by mannequin profitability and attempt to change mannequin combine itself to have worthwhile mannequin combine,” Ogata mentioned.
The evaluate wouldn’t impression the present fashions, however will take a look at filling the gaps within the portfolio to accumulate every kind of latest prospects, he added.
He famous that the corporate at present lacks entry degree bike which may compete with the rivals.
“Sadly, we shouldn’t have a powerful product for rural areas, due to this fact positively we want a mannequin to accumulate such form of prospects as a result of Honda philosophy is to provide inexpensive merchandise to prospects. It’s our accountability to offer a product that folks in rural areas should buy,” Ogata mentioned.
Subsequently, it’s underneath research to develop such form of mannequin for entry, he added.
“We do not have precise product on this section. In fact, we now have CD 110 but it surely can’t penetrate such markets,” Ogata famous.
When requested for timeline for launch of the entry-level bike, Ogata mentioned it’s going to take a while “however not 5 or ten years”.
Noting that India has numerous areas with totally different necessities by way of mobility, Ogata mentioned the corporate would additionally strengthen its mid-range portfolio (above 150cc) going forward.
In India, there are excessive earnings teams as effectively, and Honda has the expertise to herald new merchandise on this class as effectively, he mentioned.
“We have already got Unicorn and others within the over 150cc section, however that’s not sufficient. Quickly sufficient, we are going to launch some engaging fashions to ascertain new buyer teams in city centres,” Ogata famous.
On premium bike section, he mentioned the main focus now could be on localisation and India centric merchandise.
“At present, we do not have localised premium bikes with HMSI. Elements are coming from different nations and the merchandise itself are oriented in direction of superior nations.”
He additional mentioned, “Africa Twin, CBR…they aren’t India oriented fashions…so we must always have localised, unique merchandise completely examined for the Indian market. Such fashions are underneath research, at the moment I can’t inform extra however quickly particulars will comply with.”
Ogata mentioned the corporate wouldn’t solely launch new merchandise however would additionally wish to create tradition for such merchandise with curated drives and different actions.
At present, bike gross sales account for simply round 35 per cent of the corporate’s complete gross sales in a yr. Scooter vary, then again, accounts for the remaining 65 per cent of the gross sales.
HMSI at present sells eight bike fashions, together with two superbikes, within the nation.
Ogata, who was appointed HMSI head in Could, may be part of workplace solely final month because of COVID-19 led journey restrictions.
Previous to becoming a member of right here, he was based mostly in Bangkok, serving as Government Director of Honda’s Regional Operations (Asia & Oceania area).
When requested to checklist his speedy priorities as HMSI chief, Ogata mentioned he want to start with a evaluate of firm’s operations with the intention to recuperate from losses as a result of coronavirus pandemic led lockdown.
“So my first process is restoration of final two month’s losses, I feel it’s good alternative to evaluate the whole lot within the firm, not solely the factories but additionally gross sales and different departments,” he famous.
Ogata, who has over 35 years of expertise throughout numerous roles across the globe, mentioned the enterprise situation is enhancing month on month now.
“Hopefully it will likely be again to regular in subsequent one yr, so earlier than that it could be useful to evaluate the whole lot to get again the benefit,” he famous.
When requested if HMSI would additionally take a look at enhancing exports going forward, Ogata mentioned Honda Motor Co has lot of expectations from Indian bike buisness.
“Inside three years, HMSI will grow to be greatest useful resource for exports amongst the Honda Group as a result of now we now have BS-VI merchandise which could possibly be exported to even superior nations,” he famous.
The corporate is at present in discussions with headquarters as the way to utilise its manufacturing prowess for increasing abroad shipments of automobiles in addition to CKD (Fully Knocked Down) exports to Honda corporations throughout the globe, Ogata mentioned.
At present, China, Thailand and Japan are the highest exporting nations amongst Honda Group, he added.
At current, HMSI exports solely three per cent of its complete quantity to some nations akin to Sri Lanka, Nepal and Latin America.
HMSI has 4 vegetation positioned at Manesar (Haryana), Tapukara (Rajasthan), Narsapura (Karnataka) and Vithalapur (Gujarat), with complete put in manufacturing capability of 64 lakh items each year.