Honda's two wheeler unit ties up with L&T Finance, aims at 3.7 million sales in FY14

Honda Motorcycle & Scooter India (HMSI) on Wednesday partnered with Family Credit Ltd to provide loans to two-wheeler customers across India.

L&T Finance Holdings had taken over Family Credit from France's Societe Generale Consumer in 2010 to foray into two-wheeler financing by the group. Family Credit already has a tie up with HMSI for financing.

"The strategic tie-up with Honda will increase the potential of owning a two wheeler due to deeper reach of L&T Finance group," L&T Finance chief operating officer G C Rangan told reporters here.

"Previously, Family Credit's branches were 53, but under the new management it has grown to over 200 branches and other means of points of contacts with strong presence in rural and semi-urban India," he said.

The tie-up with the L&T Finance management would help the company meet its target of sales of 3.7 million units in FY 2014, HMSI deputy director (sales and marketing) Tomoaki Nagayami said.

"We are targeting 3.7 million units of sales for motorcycles and scooters by March 2014. Till April-December period the company has sold 2.5 million units," he told PTI on the sidelines of a press conference.

In 2012-13, HMSI achieved sales of 2.7 million units to become the second largest wheeler company in the country.

"We are sure that with L&T Finance Holdings' wide network and flexible finance solutions, we would be able to reach out to more and more customers," a company statement quoted Nagayami as saying.

HSMI's 30 per cent sales generated from financing. Rural contribution in sales was 35 per cent.