Despite two-wheelers being the only vehicle segment to register growth within the last year in India – up by 7.3% compared to 2012 – Honda has today lowered its forecast the region as the country suffers from slower than anticipated financial growth.
In an interview with Bloomberg on Tuesday, Shinji Aoyama, the Operating Officer for Honda Motorcycles stated that “Industry deliveries will probably expand to 20 to 25 million units by 2020”, which although still fairly strong is 5 million units short of the 30 million that Honda had previously hoped for.
Motorcycles accounted for more than 20% of the Tokyo based firm’s operating profit of the last fiscal year.
“We thought about three years ago the Indian market could reach 16 million to 18 million units by now,” said Aoyama from Honda’s Tokyo headquarters. “The market is not growing as fast as we expected, even though Honda sales are in line with our own projections.”
Honda is the second largest motorcycle manufacturer in the region behind former partner, Hero Motorcorp.