Honda to launch 4 two-wheelers in FY-18: Guleria

HERALD: We understand that Honda is launching four new models. Please elaborate.

YADVINDER SINGH GULERIA: Yes, we are in process of launching four new models. One is the Africa twin so that means another two scooters and one more motorcycle is planned. However, it is too early to share more details in terms of which segment and all, but as of now we can say two scooters and two motorcycles are going to be launched in FY18. One of the models is already undergoing a test drive at our Manesar plant in Haryana. 

HERALD: Have you touched your target of five million sales? If so, what is your next target?

YSG: I am happy to covey that we have already achieved our target of five million for FY-17 and FY-18. Again, we have kept a very aggressive target of 20 per cent growth, so that means from five million we will go to six million annual units as our target which is like adding another one million units in only 12 months. We do recognise it is a challenging target but it is achievable as we have already put in our strategy in terms of resources, additional production capacity and of course additional network 500 touch point which we are going to add. So with all these things synchronised, we are confident we will be able to hit our next year’s target.

HERALD: You talked about your new target of six million, but where are the customers?

YSG: When you set a target, all paramters are discussed – like investment, models, manufacturing capacity and assembly line, customer base etc. Every year the sales and marketing wing has to go through it and I would say with conviction that when we are entering this FY-18, the biggest confidence and foundation for us is that 30 million customer base and the very recent 5 million which we added last year. The industry has grown including export by only 5 per cent and brand Honda has grown by 12 per cent. The forecast which is coming for the industry for next financial year is anywhere between 8 to 10 per cent. After achieving the five million target, it has given us a big conviction and confidence that we can repeat it.

HERALD: How much investment is required to achieve you next target?

YSG: As of now the tentative allocation is around Rs 1600 crore for FY18 and most of it is definitely going into our new capacity enhancement which we are doing in our third fatory in Bangaluru by adding an additional assembly line. This would include the launch of our four new models.

HERALD: What has been the impact of the Supreme Court ban on BS-III engines?

YSG: Since the proceedings were going on in the courts, definitely we had prepared our plan B. And the day the final verdict was announced by the Supreme Court, we quickly aligned our resources in terms of passing of this action plan to our entire network and our sales team in the field. We with the very close coordination, quick  dissemination of the information and execution at our network level in terms of whatever discount to be offered which was clearly visibly in  our communication channels because ultimate benificiary is the customer. I would say that the power of brand also played a role as during those 48 hours to 56 hours, every two wheeler was available on discount. If everything is available on discount the discreationary power of the customer to choose one out of that then the brand power plays a huge role. I would like to thank again all our customers who, you know repose their trust in brand Honda and today we are not carrying any burden of BS-III in FY18.

HERALD: Bengaluru is hardly 600 kms from Goa. Why can’t you have a factory or an assembly line in Goa?

YSG: Goa has many other opportunities. There is a tourism industry and we are doing many of our conferences and launches in Goa. So Goa is indirectly as a part of our business plan as we are doing plenty of launches from Goa. We look forward to Goa as tourism hub and having fun time with business. We are very much part of Goa tourism as most of the people who come to enjoy Goa they are using Honda two wheelers to move around in that beautiful state. We are number one in Goa as a brand and we take pride in it.