HMSI’s new technical centre in Manesar to drive R&D

Manesar, October 18, 2012: In line with Honda’s Vision 2020 to provide good, affordable and low-emission products, two-wheeler major Honda Motorcycle & Scooter India (HMSI) has inaugurated its new technical centre at the production facility at Manesar.

Last month, Takanobu Ito, Honda’s global president and CEO, had shared the company’s vision to develop India as the centre of its global two-wheeler operations.

The new Technical Centre at Manesar will have the mandate to approach all R&D operations in India. To facilitate closer coordination and synergy of operations in an efficient manner, Honda Research and Development India (HRID), a 100 percent subsidiary of Honda R&D, Japan, is shifting its entire two-wheeler operations in India to the new technical centre. Honda will utilise the local sourcing and production infrastructure and innovate to create products that connect with customers in India.

The auto major will work towards reducing input costs by controlling cost of mass production parts yet maintain the highest levels of quality on sourcing from its component suppliers. It will also accelerate introduction of new models while successfully reducing the new model development time gap. Furthermore, improved communication and close coordination between sales, engineering, purchase, quality and R&D under one roof will lead to greater synergy and increased efficiency of operations.

Keita Muramatsu, president and CEO, HMSI, said: “The new Technical Centre will standardise, optimise and synergise our globalised approach in India with Honda’s cutting-edge R&D capabilities across the globe and a deep understanding of the local environment to give mobility to a billion Indians at a faster pace.”

Yadvinder S Guleria, vicepresident (sales & marketing), HMSI, added: “The new technical centre is the latest step in Honda’s customer-centric approach. This will lead to faster introduction of new models with greater India-specific technology and design, resulting in highest quality products yet at affordable prices.”

Having crossed the 10 million sales mark, HMSI is among the fastest growing two-wheeler companies in India for 18 months (April’11-September’12). The first six months of the current fiscal year have seen HMSI notch 49 percent growth and a significant 7 percent jump in its domestic market share to 19 percent. While its motorcycle sales have grown at 64 percent, scooter sales have risen 39 percent.

Led by the Dream Yuga which has crossed the 100,000 unit sales mark in barely four months, Honda has seen a five-fold jump in sales in the 100-110cc mass motorcycle market from April to September 2012. Following healthy bookings in both rural and urban areas, HMSI has ramped up daily production of the Dream Yuga and is targeting sales of 300,000 units in this fiscal. Overall, the company is targeting a growth of 30 percent and sales of 27.5 lakh units in FY’13 over FY’12.

The manufacturer is also rapidly increasing its market penetration by adding 500 outlets and expanding its network to 2,000 sales and service outlets across India by FY’13 end.

Honda, which aims to develop India as its centre of global operations, is keen to develop HMSI as an export hub with further growth of its motorcycle business in Sri Lanka, Nepal, Latin America, and Europe. HMSI plans to commence CKD exports to Honda’s new JV company in Bangladesh by end-2013.