NEW DELHI: Honda Motorcycle and Scooter India (HMSI) expects a stronger festive season than last year, but rising material costs are putting pressure on profitability, president and CEO Tsutsumu Otani told TOI.The company is seeing growth alongside an expanding motorcycle market, with dealers anticipating robust festive demand. However, Otani said the situation in West Asia was pushing up material costs, complicating the profitability outlook despite favourable business conditions.“Dealers have very high expectations for the festive season. Dispatches are also progressing very well,” Otani said. “Overall, compared with last year, the situation is good.” Honda is preparing inventory to meet festive demand across regions. Otani said business had been growing month by month, although the improvement in demand was accompanied by pressure on costs.“On the other hand, because of the situation in West Asia, material costs are increasing. Therefore, from a profitability point of view, it is not so easy,” he said.
