HMSI sales grow by 18.7% in FY10

Two-wheeler maker Honda Motorcycle and Scooter India (HMSI) today reported a 18.7 per cent growth in its total annual sales for the 2009-10 fiscal at 12.70 lakh units, on the back of new product launches.

The company has also set a target of achieving similar growth rate in 2010-11 with plans to reach total sales of 15 lakh units, including domestic sales and exports.

It had sold 10.70 lakh units during 2008-09, HMSI said in a statement.

"Like all the recent years, HMSI has enjoyed overwhelming success in the year 2009-10 as a result of various new product launches and other initiatives," it further said.

For FY11, HMSI has set in sight a similar growth rate of 18 per cent. The company is aiming to cross the 15 lakh units sales mark, it added.

The company launched seven new products during 2009-10 including the CBF Stunner PGM-FI, the CB Shine and the New CBF Stunner, the New Aviator, CB Twister, the New Dio and the New CB Unicorn.

The year also marked HMSI's foray into the entry-level bike segment of 100-110cc with the launch of CB Twister in December 2009.

It added 96 new outlets in 2009-10. The HMSI network now includes 760 dealers and sub-dealers. Fifty new Authorised Service Centres (ASCs) were also opened during the fiscal, the statement said.

During a year marked by a three months long go-slow and labour dispute at its Manesar plant, the company also announced its decision to set up a second plant in Tapukara Industrial Area near Bhiwadi (Rajasthan) with an investment of Rs 470 crore.

The Rajasthan facility would be operational by the second half of 2011 and will have an annual capacity of six lakh units. The existing facility at Manesar has a capacity of 15.5 lakh units which is to be increased to 16 lakh units by next year.

The go-slow during August-October 2009 at Manesar resulted in losses of over Rs 300 crore as production came down by almost 50 per cent.