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Honda Motor Co sees 30 pct motorbike revenue from India by 2020
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Sunday, 20 May 2012

Honda Motor Co launched its first mass market motorcycle for India and its cheapest motorbike worldwide on Tuesday, as it aims to tap low-cost emerging markets including more than doubling India's share of its motorcycle revenue by 2020.

Honda, which ended a 26 year joint venture with India's Hero MotoCorp in March of last year in an USD 851 million deal, has announced fresh investment worth INR 20 billion (USD 373 million) since then as it looks to chase down its former partner, the current market leader.

Honda expects India to account for 30% of its global motorcycle revenues by 2020, up from 13% currently, said Mr Keita Muramatsu president of Honda Motorycle & Scooter India at the bike's launch in New Delhi. Mr Yadvinder Singh Guleria marketing head for Honda India said that "Our long term target is to be the number one in India by 2020.”

He said the company targets sales of 300,000 Dream Yugas in the current financial year that ends in March 2013.

Entry-level commuter bikes account for around 70% of the domestic market in a country that sold over 10 million bikes in the last financial year, second only to China.

Under the joint venture agreement, Honda was banned from directly competing with Hero Honda vehicles.

Source - Economic Times


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