"We are poised to post 20 per cent rise in sales during this fiscal over 20.7 lakh units sold in 2003-04. Earlier, we were expecting only 10 to 15 per cent rise," Hero Honda executive director (business operations) Atul Sobti told PTI.
Hero Honda, which is 26 per cent each owned by Honda Motors of Japan and the Munjals, received a record three lakh units' retail orders for November 2004 over one lakh units retailed in the same month last year.
The company has a combined production capacity of 2.2 million units annually at its two plants in Haryana, which can go up to 2.4 million units.
As a result of "huge demand" and production constraints, there was a long waiting period at Hero Honda dealerships, Sobti said. The company is believed to be working on the third plant. However, Sobti refrained from commenting on the proposed plant.
Hero Honda had started a feasibility study to set up the third plant about two years back to meet the growing demand for its motorcycles.
The company, which is also planning to foray into the scooter segment, will launch its next motorcycle in the first quarter of next calendar year.
"As far as entering the scooter segment, I will not be able to say anything now. The only thing, which we are planning now is to launch our next motorcycle before March 2005," Sobti said.
Earlier, Hero Honda was believed to have delayed the plans to establish the third plant in view of the slow motorcycle demand as sales hit a speed-breaker towards the end of 2003-04 mainly due to deficient rains, petrol price rise and imbroglio over value-added tax regime.
Motorcycle sales again picked up from the third quarter of last fiscal.
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