Two-wheeler major Honda Motorcycle & Scooter India (HMSI), a 100 % subsidiary of Japan’s Honda Motor Company, is planning to open its own exclusive retail stores. It has sought the permission of the Foreign Investment Promotion Board (FIPB) to start .
The products to be sold at these outlets would range from high-end imported motorcycles and all-terrain vehicles (ATVs) to specialized side-by-side vehicles (small ones designed for off-road use), spare parts, accessories and even Honda-branded merchandise.
HMSI has also sought permission to sell over 28 categories of Honda-branded merchandise. These include mugs, pen drives, key chains, t-shirts, wall clocks, wallets, riding boots and body protectors. These sales outlets would also purchase and sell spare parts and accessories for its entire range of vehicles. 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.
Under the existing FDI policy, a single-brand retail company with foreign investment must source 30 % goods from India, preferable from micro, small & medium enterprises. Since the value of spare parts, accessories, apparel and merchandise sourced from domestic vendors would be significant, the mandatory local sourcing condition in trading of spares, accessories and merchandise would also be met, the company said in its proposal.
Related Tags:Honda Motorcycle, Honda Scooter India, exclusive retail stores, single-brand retail outlets