In an industry first, Honda Motorcycle and Scooter India (HMSI) plans to launch its own exclusive retail store which will house a range of products the company manufactures.
The Business Standard reports that the products to be sold at these outlets will range from the company’s high end sports bikes, all-terrain vehicles (ATVs), side-by-side vehicles (SxS), spare parts, accessories and Honda branded merchandise.
In an application seeking permission from the Foreign Investment Promotion Board (FIPB), Honda said the outlets would give “better visibility to our brand Honda in India which will help ensure access to the advantages of cutting-edge technology, world-class products and services to the Indian two-wheeler industry, resulting in competitive pricing for products and services”.
The products that could be introduced include Honda’s sports ATVs TRX 250 TE and TRX 450 FA, SxS Pioneer 700 and MUV 700. The company has also sought permission to bring in Honda-branded mugs, pen drives, key chains, t-shirts, wall clocks, wallets, riding boots and body protectors.
Apart from this, spare parts for the entire range of products (even the ones produces in India) will be sold at these outlets. The spare parts and accessories for two-wheelers manufactured in India would be procured from Indian suppliers, while those for imported products would be sourced from overseas facilities.
However, under the existing FDI policies, a single-brand retail company with foreign investments must source 30% goods from India. Honda points out that it would not be possible to source high-end parts for the imported products from Indian vendors, for which it is seeking a waiver of the rule. Honda to open company owned retail stores | wheelsunplugged.com