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New bike plant, expansion for Honda in India

May 27, 2011
Filed under Features

Honda Motorcycle & Scooter India (Pvt.) Ltd. (HMSI), Honda’s wholly-owned motorcycle production and sales subsidiary in India, announced plans to expand the production capacity of its second motorcycle production plant, which is under construction, and to build a third motorcycle production plant to meet increasing demand in the rapidly growing motorcycle market in India.

This capacity expansion plan will increase HMSI’s total annual production capacity by 2013 to 4 million units, including 1.6 million units at the first plant, 1.2 million units at the second plant and 1.2 million units at the third plant.

India represents the world’s second largest motorcycle market behind only China, and industry-wide motorcycle sales in India for 2010 reached 11.32 million units (up 30 percent compared to 2009). HMSI was established as a wholly-owned motorcycle production and sales subsidiary of Honda in 1999 and began production in 2001.

The second plant is currently being built in the Tapukara Industrial Area of Rajasthan, which is approximately 55 miles from the center of Delhi. It is scheduled to become operational in July 2011 with annual production capacity of 600,000 units. HMSI decided to double the annual production capacity of this plant to 1.2 million units in March 2012.

The third plant will be built in the Bangalore area in the southern part of India, which will enable HMSI to more efficiently serve the vast motorcycle market of India together with the first and second plants in northern India. The third plant is scheduled to become operational in the first half of 2013, with annual production capacity of 1.2 million units.

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