Honda Cars to leverage synergies with HMSI to drive growth in India

Takashi Nakajima, President & CEO, Honda Cars India Ltd.

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Honda Cars India is looking to strengthen synergies with Honda Motorcycle & Scooter India (HMSI) as part of its broader strategy to accelerate growth in the Indian market, a top company executive said on Friday.

Takashi Nakajima, President & CEO, Honda Cars India Ltd, said the company is increasingly focusing on collaboration across Honda’s automobile and two-wheeler businesses to improve cost competitiveness and expand its customer base.

“Already we have been doing many cooperative businesses with HMSI,” Nakajima said during an interaction after the launch of the new Honda City and the unveiling of the ZR-V e:HEV hybrid SUV.

He said the company is also working closely with HMSI on sourcing and operational synergies as Honda aims to localise more components and align products with Indian customer preferences.

“Another challenge is cost competitiveness. More localisation and efforts to match Indian customers’ requests and preferences are important,” Nakajima said.

On May 14, Honda Motor Company Director, President, and Representative Executive Officer, Toshihiro Mibe, had also outlined that to address the diverse needs of its customers, the two Honda entities in India will strengthen collaboration. “We will enhance synergies between our motorcycle and automobile business in India,” Mibe had said.

As part of the integration strategy, Honda has also established a new digital marketing company, HDII, aimed at connecting HMSI’s two-wheeler customer base with Honda’s passenger vehicle business.

“It is a digital marketing company which combines motorcycle customers to automobile sales,” he said.

Nakajima noted that HMSI sells nearly 6 million two-wheelers annually in India, creating a large pool of potential entry-level car buyers for Honda.

“Of course, not all, but already some percentage is coming to automobiles. They buy motorcycles and also they have automobiles. That kind of customer can be our customer,” he said.

Honda Cars India strengthens HMSI collaboration as it targets growth through SUVs, hybrids and localisation.

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Aggressive product assault

The Japanese carmaker is also betting on expanding its product lineup to drive growth in India, which the company has identified as one of its top three focus markets globally. The automaker has lined up six launches this fiscal year, including a sub-4 metre SUV expected by 2028.

Nakajima said SUVs and hybrids will remain key pillars of Honda’s India strategy going forward.

“SUV is now the most increasing market and customers want SUVs. So, sub-four SUV should exist,” he said.

The company is also evaluating hybrid localisation in the future, although Nakajima said scale remains critical before local production becomes viable.

“At first, we will increase sales of hybrid systems. Certain volume is necessary for localisation,” he said.

Honda Cars India is targeting more than 10 per cent growth this financial year despite macroeconomic uncertainties, he added.