Honda 2 Wheelers to get BSIV engines, ABS & CBS in 2016
Honda Motorcycles & Scooters India (HMSI) have announced that they shall be upgrading their entire product range for the year 2016-17. The upgradation programme shall begin with engines being brought up to be Bharat Stage IV (BSIV) emissions compliant across the model range. HMSI are scheduled to roll-out the first of their upgrades sometime towards the first half of 2016, with one every month being the target to be achieved. This is in-line with governmental regulations that are set to come into force, decreeing all two-wheeler engines to be Bharat Stage IV compliant by the 31st March, 2017 cut-off date.
Along with this, the company shall also be introducing two safety features as mandated by government guidelines for all two-wheelers fitted with engines 125cc and above. Thus, all Honda two-wheeler products shall gradually be upgraded to feature Anti-Lock Brakes (ABS) as well as a Combined Braking System (CBS) from 2016. The company has indicated that minor-price revisions to recover the cost of investment with respect to these additions is to be expected.
Sales are also likely to be affected due to this exercise, but the manufacturer is gearing up to ensure that all its products are compliant well ahead of the government indicated cut-off date. The manufacturer further added that the pressure on the bottom-line could increase. should the shift to Bharat Stage V (BSV) emissions norms be advanced from its earlier declared timeline.
With production capacity already fully utilized, HMSI shall begin rolling out products from its new plant (commissioned at a cost of INR 1100 crore) in Gujarat by the first month of the new year itself. In-fact, the manufacturer is gearing up to double the 6 lakh unit capacity at the plant before Q3 2016, taking the total plant capacity to 12 lakh units annually. Following this, HMSI shall then turn their focus on augmenting capacity at their existing operations in Karnataka where expansion work is already underway.
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