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5th Honda two wheeler plant in India could be set-up in the East

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HMSI currently has manufacturing facilities in Manesar in Gurgaon (Haryana), Tapukara in Alwar (Rajasthan) and Narsapuram in Kolar (Karnataka) – two in north and one in south. Fourth Honda two wheeler plant is being built in Vithalpur in Gujarat, which is in the west, set to start operations by February-March 2016.

Honda CBR 250R
Honda Two Wheelers consistently sells more scooters than bikes, although the market demands three motorcycles for every scooter.

Hence, to spread out in the country evenly, the two-wheeler giant is contemplating on setting up the fifth Honda two wheeler plant somewhere in the east of India.

Production capacities of HMSI’s current plants are 16 lakh, 12 lakh and 18 lakh units per year, respectively in Haryana, Rajasthan and Karnataka. Once Gujarat plant is fully operational, it will produce another 12 lakh two wheelers annually.

All the first three plants have flexible assembly lines, allowing manufacture of motorcycles and scooters. But the one coming up in Gujarat will be exclusive to rolling out scooters. As a result, the trio will have to make less scooters, giving the company opportunity to build more motorcycles and push them harder into the market.

Pre-dominantly, Honda has been known as a scooter brand. Back when they started off, after split with Hero MotoCorp, they used to sell 1 motorcycle for every 3 scooters. They want to bring this ratio to 1:1, and they are close to achieve that. Last fiscal year, HMSI sold 17.67 lakh motorcycles, as against 19.55 lakh scooters.

Product lineup of Honda Motorcycle & Scooter India comprises of five scooters and 11 bikes as of now. Their current market share in the India stands at 26%, as against Hero’s 40%. They have planned15 launches for 2015, of which 7 are brand new models. This includes already launched CB Shine 125, CB Unicorn 160, Activa 3G and facelifts of entire Dream series. Next the company plans to launch CBR 650F, and another motorcycle later this year. All this, to become India’s No 1 two wheeler manufacturer, by replacing old partner and now No 1 rival to second spot.

Via – ET Auto