Honda Siel Cars India Ltd (HSCIL), the country’s seventh-largest car-maker, is eyeing the growing luxury boating segment.
“We are exploring the Indian market, particularly in the western coastal area, for our outboard motors. But the import duty levied on imported engines is a concern,” said Masahiro Takedagawa, president & CEO of HSCIL.
Internationally, Honda sells its full lineup of four-stroke outboard motors (motors fixed to a boat’s tail-end and visible from the outside) to the leisure segment of ocean sailing. These motors range from 2 hp for lake cruising to the high-speed 225 hp for the high seas.
In the US and Japanese market, Honda sells its BF 40/50 series of outboard motors. At present, outboard motors from Yamaha, Suzuki and Honda are imported into the country.
Honda’s interest in the Indian luxury boat segment comes after auto major Mahindra & Mahindra (M&M) announced plans to build boats in a 51:49 joint venture with Mumbai-based Ocean Blue Boating, the country’s largest leisure boating firm. Mahindra has plans to make power boats, catamarans and cabin cruisers.
Its first product for the Indian market, the Mahindra Odyssea — a 20 ft boat priced at Rs 10 lakh — was unveiled at the recently concluded Mumbai Boat Show. The company hopes to sell around 300 units in the domestic market annually.
The leisure boating segment in India is estimated at around 500 units of both boats and yachts, which is between Rs 500 and Rs 800 crore per annum. This figure includes ancillary sales like that of spare parts and boating accessories.
A Merrill Lynch Cap Gemini report estimates the number of people in the country with over $1 million at around 85,000. Industry executives say these are the potential customers for luxury boats and yachts.
“The luxury boating industry is still at a nascent stage. The country has 7,000 km of sea coast and about 24,000 km on inland waterways waiting to be explored. This is the number one driver which will move individuals to buy personal boats and yachts,” said Malav Shroff, director of Ocean Blue Boating.
