Honda with it two wheeler

Honda automobiles have recently reaffirmed its promise to its existing with JV with Hero Honda but it will get into any segment of two wheeler space through 100 percent of subsidiary on Honda Motorcycle and Scooters India (HMSI). Part is being eyed by HMSI includes motorbikes includes in the range 100cc to 150cc and scooters also to take market shares. Hero Honda holds 26% shares in the market. Honda motors has decided to launch its two wheeler in the market with HMSI. Rumors are also there that Honda is committed with JV with India's group said by Asian Honda Motor's President and CEO Fumihiko. HMSI is going to launch its 100cc bikes next year and would have to complete its bike profile, now we have 125cc and 150cc , at present Hero Honda has 47% of shares in the market said by sales head Mr.Yadvinder Singh Guleria. Hero Honda, and HMSI commands 65% of share in the market and they are planning to sell the product in the same category which will befit Honda. Honda makes separate strategies for both the companies. However, cannibalization is inevitable in certain cases said by Sales Head of the company. Company is planning to invest 360 Crore this year to achieve 15% per Annum capacity by March 2010. After achieving this target we will expand and set up a new plant because there is no space for expansion. Details of new plant will be given only after reaching to this target successfully said by Mr. Guleria.