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Honda to make Indian arm export hub

By Our Special Correspondent

NEW DELHI MARCH 7. Honda, one of the world's leading automobile company, today announced plans to utilise its Indian two-wheeler plant for the export market in a big way.

`Lead', actually a variant of Dio, which has already been launched in the Indian market, will initially be exported to Germany, Switzerland and Italy. The company plans to export 12,500 units in the first year. It eventually hopes to step up volumes as well as target more European countries.

Honda already has a joint venture in the country with the Hero Group but set up its fully owned plant a couple of years back. However, its own plant cannot manufacture the high selling motorcycles till the JV agreement with Hero runs out in 2004. As a result, it has restricted itself to producing `motorscooters'. The first was Activa, a scooter, and the second Dio, which company officials describe as combining the features of a motorcycle and the ease of use of a scooter.

Honda has shied away from launching a `true' scooter because of the trends in the Indian market. The pre-eminent position enjoyed by scooters has fast eroded and even the market leader Bajaj was unable to arrest the decline in popularity. On the other hand, motorcycle sales have been constantly increasing. Honda's first two models are also being exported to some countries in Africa and Latin America. "Lead marks the beginning of models produced in India exclusively for the international market. With this we have taken another important step towards making Honda Motorcycle & Scooter Company an important supply base for Honda's global market," said a company release.

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