India's top motorcycle maker, Honda Motorcycle & Scooter India (HMSI) is to exceed the sales target of 4 million units in the financial year 2010. The company is planning new launches to lure more customers.

Mr. Pawan Munjal, company’s managing director said, "Our growth has been due to our new launches during the downturn and huge focus on the rural markets, where we believe a lot of money has been pumped in through initiatives taken by the government."

Honda Motor Corp of Japan holds a 26 percent stake in the company. The company has nearly 60 percent market share in the Indian motorcycle and scooter market where more than 7 million units are sold annually.

The company sold more than 3.4 million units in the first nine months of the current financial year. Munjal added that the market requires new launches with a very fast pace and the company is keeping up with its six new models in the last 12 months and similar launches with similar pace planned for the next two or three years.

Hero Honda with popular brands like Splendour and Passion under its name is planning to attract youngsters aged 18-24 years by its new launches. The corp. does not intend to enter the 200 cc or 300 cc bike segment.

Munjal also outlined a plan to invest upto Rs 200 crore in the next financial year including investments in research and development as the company plans to sell 1.5million bikes in 2010-11 at a growth rate of 20 per cent over
2009-10. The upgradation of its Haridwar plant in north India is also on the planning stage.

The managing director said the reluctance of banks to offer credit to buyers as a result of the global financial crisis was a challenge to the company. Now, even as the loans for cars and trucks have revived the loans for new bikes and scooters are perceived risky by many lenders. However, he hopes the situation will improve.

Hero Honda shares ended down 2.5 percent at 1,653.35 rupees on Thursday while the index fell0.5%. Company’s market value more than doubled to $7.3 billion in 2009.