Honda Motorcycles aims sales of over 1 million units in festive season

Chandigarh: Two-wheeler maker Honda Motorcycles & Scooter India (HMSI) today said it aims to clock sales of over 1 million units during this festival season on the back of implementation of 7th Pay commission and favourable monsoon.

"We plan to sell more than one million units during this festival season," HMSI Sr Vice President (Sales & Marketing) Y S Guleria told reporters here today. The company is targeting 25 per cent growth in sales during festival season as compared to sales it clocked during last festival season.

"We are expecting that bikes will constitute 35 per cent of target sales during festival season as demand for motor cycles picks up in rural sector during these months," he said.

It is offering cash benefit of Rs 2,000 on the purchase of motor cycles to woo central government and PSU employees who have got money under 7th pay commission.

"Everybody is talking about release of money to central government employees under 7th pay commission as well as release of arrears to railway employees. Moreover, we have One Rank One Pension," he said.

The positivity in the economy led by 7th pay commission, OROP disbursements and favourable monsoon has translated to a robust return of demand for two-wheeler, he said.

Posting a growth of 24 per cent in six months of this fiscal, Guleria said that the company was aiming at overall growth of 22 per cent in total sales at 5.4 million units.

"We are anticipating total sales of 5.4 million units by end of this fiscal which will be 22 per cent higher than sales of last financial year," he said.

Out of total sales, scooters continue to dominate as it constitutes about 70 per cent of total volumes of HMSI, he said.

On exports front, he said that the company registered 34 per cent growth in total exports this fiscal due to higher sales of two-wheelers in SAARC countries like Nepal and Sri Lanka.

Exports currently constitute 4.8 per cent of HMSI's total sales.