Honda Motorcycle to expand production capacity; invest Rs 630 cr

Honda Motorcycle & Scooter India (HMSI) will infuse fresh funds to the tune of Rs 630 crore to set up a new assembly line in its Gujarat plant for expanding its capacity by 0.6 million units per annum to seven million. 

The company will build a new production line at its Vithalapur Plant near Ahmedabad, which will be commissioned by 2020.

Currently operating four plants in India, HMSI opened the scooters-only Vithalapur plant in February 2016. The plant was started with a 0.6-million capacity, which was doubled to 1.2 million in June 2016. 

Minoru Kato, President & CEO of HMSI, said, "Over the years, Honda has been investing and expanding its capacity to enhance customer's joy in the largest 2Wheeler market of the world. The additional capacity at our 4th factory reinforces our commitment to serve our customers faster, who have reposed their trust in brand Honda."

Honda, the second largest two-wheeler maker in the country, set up its first plant at Manesar, Haryana, the second at Tapukara, Rajasthan, and the third at Narsapura, near Bengaluru.