After creating a niche for its products in the urban and semi-urban regions of India, Honda is now targeting customers in smaller towns and villages.

Shipments of the Indian division of Honda Motor Co. jumped 49 per cent in the five-month period through August 30 from the corresponding period of the previous year. The increase is very impressive particularly when we see a 1.8 per cent increase in shipments at Honda's former partner Hero MotoCorp Ltd.

Yadvinder Guleria, vice president for sales at Honda's India division, said, "When we started, we targeted urban and semi-urban customers, now we are going to smaller towns and villages," said Guleria. "Adding new models has helped extend the market."

Guleria added that Honda aims to increase sales of its two-wheelers by 30 per cent to 2.75 million units in the twelve months through March 31.

Honda introduced the 150-cc CBR150 in March and the 110-cc Dream Yuga motorcycle in June this year. The Indian division of the Japan-based manufacturer also introduced the Indian customers to a refreshed version of its Dio scooter and 125-cc Shine motorcycle earlier this year.

Honda's Rajasthan-based plant doubled its output from March, with a capacity to manufacture 1.2 million units per year. Its Manesar-based factory has a capacity to manufacturer 1.6 million units per year.

Honda, the world's leading manufacturer of motorcycles, exited its twenty-six-year partnership with Hero in 2010.