Honda Motorcycle & Scooter India Pvt. Ltd. has announced that it will be expanding annual production capacity of its fourth manufacturing plant with an aim to increase total production capacity to 7 million by the year 2020. Honda 2Wheelers currently has four production plants in India - Manesar, Haryana; Tapukara, Rajasthan; Narsapura, Karnataka; and the fourth one being at Vithalapur in Gujarat. The Vithalapur plant started operations in the financial year 2015-16 with a production capacity of 6 lakh units a year.
Honda 2Wheelers doubled annual production capacity of its Gujarat plant, which only produces automatic scooters, to 12 lakh a year in the financial year 2016-17. While the production capacity of the Gujarat plant has been maintained at 12 lakh units a year, Honda 2Wheelers now plans to increase it by 6 lakh in 2020.
With an investment of Rs 6300 million in Honda’s Vithalapur Plant in Gujarat, its expansion will increase Honda 2Wheeler India’s overall annual production capacity to 7 million units by the year 2020.
Honda has been expanding to deliver better to the customers in the largest two-wheeler market in the world, Minoru Kato, President & CEO - Honda Motorcycle & Scooter India Pvt. Ltd. said, adding that the increased production capacity from the fourth plant will reinforce the company's commitment to deliver to the customers faster.
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An increase in Honda 2Wheelers production capacity in line with an announcement the company made in Aril this year, stating that it would launch 19 new two-wheelers which would include one all-new product. The 18 others will be upgrades of existing Honda two-wheelers. Speaking of new products, Honda X-Blade and Honda Activa 5G were launched in March this year.
The Indian two-wheeler industry crossed 20 million unit sales for the first time in the last fiscal. During this period, motorcycles grew at 14 percent and scooters registered a growth of 20 percent. Honda Activa maintained its dominance as the best selling two-wheeler in India during FY2017-18.