Honda 2Wheelers to expand production capacity to 7 million units a year by 2020

Honda Two-wheelers & Scooters has announced it will be increasing its production capacity to 7 million by the year 2020, which is in line with its previous announcement of launching 19 new two-wheelers this fiscal.

By: | Updated: October 22, 2018 10:36 AM
Honda Grazia was launched in India in November 2017 at a starting price of Rs 58,133 (ex-showroom, Delhi). Honda Grazia

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.

honda two wheelers to increase production capacity

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.

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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.

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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.

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