Honda plans 1.2m a year two wheeler plant in Gujarat

Honda Motorcycles and Scooters India (HMSI), leaders in the scooter segment in India with a 53% market share is eager to enhance position even further. It is for this reason and for the fact that demand has seen a notable increase that the company has planned the world’s largest scooter plant in Gujarat. This plant will have capacity to produce 12 lakh (1.2 million) units per annum.

Honda plans worlds largest plant in sanandWith the Indian two wheeler market growing by leaps and bounds and supply falling far short of demand, several two wheeler makers such as Hero MotoCorp, Suzuki, Yamaha, TVS Motors and M&M are all planning to expand their operations in the country. HMSI is however in the lead with this new plant in Gujarat set to get into motion and the company has already finalized vendors and small scale component manufactures for this upcoming plant.

Honda Activa has seen immense response in the past 13 years in circulation. The Honda Activa launched in 2001, still claims a waiting period despite the fact that a number of competitors in its segment have been launched since. The proposed new HMSI plant is expected to come up in Sanad, where Tata Motors and Ford India plants are also setup.

About 30 kms from Gujarat’s largest city, Ahmedabad, the new Honda plant will see investment of INR 1,100 crores. Honda’s fourth plant will also see the addition of 3,000 more jobs and will be adding to production capacities taking it to a total of 58 lakh units by 2015-16. Honda’s plants in Haryana, Rajasthan and Karnataka all produce 16 lakh, 12 lakh and 18 lakh units respectively while the new plant in Gujarat will take make India its top global market.

On Friday, HMSI reported a 32.87% increase in total sales for the month of July. Total sales in July 2014 stood at 3,81,441 units as against 2,87,048 units in the same month in the previous year. Motorcycles sales increased 6.83% to 1,57,746 units in July 2014 as against 1,47,656 units in July 2013 while scooter sales increased 60.45% to 2,23,665 units in July 2014 as compared to 1,39,392 units sold in July 2013.

via Economic Times