Honda Motorcycles Scooter India to set-up fourth plant in Gujarat?

Honda Motorcycle and Scooters Limited (HMSI), the country’s second largest two wheeler manufacturer, is reportedly scouting to set up shop in Mandal-Becharaji belt, Gujarat. If this turns out to be true, this will be the company’s fourth manufacturing unit in India.

HMSI looking to set-up 4th plant next Maruti's Gujarat plant site in Becharji-HansalpurThe first HMSI plant became operational in 2001 in Manesar, Gurgaon, Haryana. The second plant became operational in 2011 in Tapukara, Rajasthan, while the third plant came into being recently in Narsapura Area, District Kolar (Karnataka). The third plant started operations in June this year. With this, Honda Motorcycle and Scooter India’s production will reach 46 lakh units by FY 2014 end.

HMSI overtook Bajaj and became the the second largest two wheeler manufacturer in the country during 2012/13. They aim to become No 1, a position which has been held by Hero MotoCorp since Apr-Jun 2001 (Hero MotoCorp was Hero Honda back then, and they de-throned a leader in the segment for 43 years, Bajaj Auto). HMSI aims to replace Hero by 2020, or even before (by 2016), if the slowdown in economy continued, says Shinji Aoyama, Operating Officer, Hondo Motor Co.

In order to become No 1., HMSI has a plan, which is to produce more motorcycles and increase the number of dealerships. They are simultaneously working on both of them. Back in May this year, Y S Guleria, VP, Sales and Marketing, HMSI, had confirmed that they are on the lookout for a site for their 4th plant.

It is now revealed by Business Standard, that HMSI is searching for land in areas of Viramgam, which is close to both Sanand and Becharaji belt. HMSI is also weighing the options of purchasing land in the Mandal region, next to Maruti’s plant. Just like their other three plants, HMSI is in need of around 100 acres of land for the new plant which will come in at an investment of between INR 1200 to 1500 crores.