India

As India emerges as the world's largest motorcycle market, it has also seen the arrival of a new kid on the block - Honda Motorcycle and Scooters India (HMSI). Showcasing the future of the scooter, HMSI produces sleek two-wheelers for a new Indian market.

Established only three years ago, HMSI holds an important place in Honda's global plans for the two-wheeler market. Given the strong cost benefit that India offers, HMSI shall act as an important global sourcing base for Honda.

To the surprise of many, HMSI has broken the previous Honda record by beginning production within sixteen months of conception. "Starting from scratch, we have already achieved outstanding results," remarks HMSI's president and CEO, Haruo Takiguchi, with evident pride. "With a current production capacity of 150,000 units per year and a network of around 67 dealerships, we can say we have surpassed our target."

This is not the first for Takiguchi. While based in Vietnam, Takiguchi managed to establish a plant there in a record breaking 21 months. About HMSI, he jokes: "I am breaking my own record here."
Haruo Takiguchi, president and CEO of Honda Motorcycles and Scooters India

HMSI prides itself on its "green factory" concept, which is followed by similar Honda facilities across the world. "This concept pursues energy efficient methods and fights water pollution by reducing industrial waste," says Takiguchi.

The products that leave the factory are equally innovative. Introduced into the market under the brand name Activa, the scooters come equipped with a host of features not seen before in the local market. "The Honda Activa is powered by a 4-stroke engine, and has a steel body that offers cost effective repair," he explains. "Our high tech products are low maintenance."

"We have also strived to localize all of the content," continues Takiguchi. "We do not want to import any parts or materials - and already 97 percent of the scooter is made in India. Within one year we hope to reach 100 percent. We have also managed to purchase some equipment locally, and therefore we have kept a close eye on the bottom line."

HMSI only produces scooters, and does not compete in market share with India's ubiquitous Hero Honda motorcycles. "We have a contract with Hero Honda to resist the motorcycle arena," he explains. "Our aim is to promote the Activa, and continue to develop other scooters suitable for the Indian customer. We want to exceed their expectations, and initiate a change here in India. This may well be my last venture with the group. After 37 years in the company, I plan to leave with a bang!"