Honda to open two-wheelers stores

First foreign auto maker to take advantage of 100% FDI in single brand retail.


Honda Motor's two-wheeler unit in India has sought permission from the government to open wholly owned stores in the country. This move should give better visibility to the brand Honda in India.

A spokeswoman for Honda in India said the company hasn't finalised plans to open stores in the country, and said even though they are exploring opportunities to expand the Honda brand in India, there is nothing concrete yet.

Honda is the first foreign auto maker to seek permission to open a store in India without a local partner, given the 100 per cent foreign direct investment (FDI) permitted in single-brand retail. At present, foreign auto companies sell products through local franchises.

Under the existing FDI policy, a single-brand retail company with foreign investment must source 30 per cent of goods from India, preferably from micro, small & medium enterprises. Honda has sought a waiver on this, and highlighted it would not be possible to procure high-end technology from Indian suppliers, for products like high-end bikes and side-by-side vehicles.