New Delhi: Hero Honda is close to start its third manufacturing unit in Rajasthan. The two-wheeler market leader is targeting a 60 per cent jump in its volumes in 2006 without any major launch on the cards.
Expansion will be the strategy for the company to maintain its leadership position in the coming year.
Its forthcoming plant will have an initial capacity of around 400,000 bikes, which will be hiked gradually, like the way it is being done in its existing plants in Dharuhera and Gurgaon.
"It will be like the other plants eventually. Dharuhera's producing 5,000 a day, Gurgaon is producing 6,500 a day. We'll also hike Daharuhera's capacity to 6,500 a day soon," Brijmohan Lall Munjal, Chairman, Hero Honda Motors said.
Hero Honda has set a target of 3.6 million bikes next year, which is a 60 per cent growth over its achievable target of 3 million this year. So, will the company launch all new models in the coming year to reach this target?
"I don't think so. Last year we launched five new products. There will be MMCs but in case there's any demand for a new model we have the capability," said Munjal.
According to Hero Honda, the two-wheeler market is expected to grow at around 10 to 12 per cent.
Hero Honda says while it will strive to maintain its current position in the domestic market, it does not have any expansion plans for the overseas markets unlike like Bajaj Auto and TVS Motors.
Comments
0 comment