Capacity Glut? ; Hero Honda Ramps Up Output in a Falling Market.
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Summary
The country and the world's largest two-wheeler company, Hero Honda, could have got a bigname politician to inaugurate its new plant in the holy city of Haridwar in Uttarakhand. Instead, it chose the patriarch of the Hero family, Brijmohan Lall Munjal, to officially inaugurate its third facility amidst a cacophony of sound and a dazzling laser show. However, the new facility, with an initial capacity of 500,000 units, which will rise to one million units by the end of 2008, is going onstream just as the Indian twowheeler industry has ended its worst year in over a decade.
Motorcycle sales declined 11.9 per cent during the year ended March 2008. Hero Honda, which will see its installed capacity across its three plants climb to about five million units once the new plant is completed by the end of 2008, realises that the scenario isn't as rosy as it was. The industry has had to face several problems among them, rising commodity prices and the refusal of banks to extend credit to motorcycle buyers over the last year, admits Hero Honda Managing Director Pawan Munjal, but adds that he is optimistic about the year ahead.See the full content of this document
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Capacity Glut? ; Hero Honda Ramps Up Output in a Falling Market.
The incentives announced in the Budget, parti...
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