Honda India Power Products enters marine engine business, eyes up to 15% market share

Honda India Power Products has entered the marine engine business in the country, with an initial target to capture up to 15% market share in the four-stroke outboard motor (OBM) category.

OBMs are engines that are used to power boats and other marine vessels. At present, their sales in India stand at nearly 10,000 units per year. While the two-stroke OBMs command a 70% market share, the remaining 30% is taken by four-stroke OBMs.

“We want to target initially about 10% to 15% market share in the four-stroke segment,” Takahiro Ueda, chairman and managing director, president and CEO, Honda India Power Products, told FE. The Japanese firm manufactures only four-stroke OBMs.

Honda India Power Products will introduce three types of four-stroke OBMs — portable series (6 PS to 20 PS), mid series (40 PS to 90 PS) and big series (150 PS to 250 PS). The company will initially import all the OBMs either from Japan or China.

“So, we currently have a production facility in Greater Noida, Uttar Pradesh, and here we produce generators, tillers, water pumps, engines, and mainly power products, while OBMs will be produced mainly in Japan factory. Some smaller engines will be coming from our factory in China. Of course, with a growth of the business (in India), we may consider producing here because our policy is to manufacture where the demand exists,” Ueda said.

“In Japan we produce like 50,000 engines. In the first few years, we are not expecting so big volumes here. So, from that sense in the initial stage, it’s more feasible to import and all the other OBM manufacturers also import,” he added.

Among the power products sold by the company are tillers, brush cutters, water pumps, lawnmowers, generators and general-purpose engines. Honda India Power Products claims a share of 30% in the power products market. It exports products to North America, Europe, Africa, Australia, Middle-East and Asian nations as well.