Honda Motorcycle & Scooter India (HMSI) has inaugurated the second assembly line of its fourth manufacturing plant at Vithalapur, Ahmedabad district, Gujarat. With this, the company has added an additional 6 lakh units annual production capacity, and the Vithalapur plant’s total capacity has now reached 12 lakh units annually. This second assembly line is an exclusive scooter-only production line and will produce India’s largest selling two-wheeler, the Activa.
This expansion increases HMSI’s total annual production capacity to 58 lakh units. This includes 12 lakh units at first plant (Haryana), 12 lakh units at second plant (Rajasthan), 18 lakh units at third plant (Karnataka) and 12 lakh units at fourth plant (Gujarat).
Keita Muramatsu, president & CEO, HMSI, said, “India is not only the world’s leading two-wheeler market, but is also going to be the top contributor to Honda’s global two-wheeler sales for the first time in this fiscal year (2016-17). Scooterisation, a trend seen earlier in developed markets of the world, is firmly driving the Indian two-wheeler industry. The scooter segment is growing at 30% compared to 15% growth of the two-wheeler industry.”
Yadvinder Singh Guleria, senior vice-president, Sales & Marketing, HMSI, added, “Today, HMSI is leading the scooterisation of India with a 58% market share. The new second assembly line addition further supports Honda in cementing its undisputed leadership in the scooter segment. Ending the 17-year-old monopoly of the motorcycle, our iconic automatic scooter, the Activa, is now India’s largest selling two-wheeler.”
With its fourth plant, HMSI is also giving a big boost to the economic development in Gujarat. Honda and its 23 vendors have together invested close to Rs 2,200 crore and generated nearly 9,000 new employment opportunities in the state. Of this, HMSI’s fourth plant is directly employing close to 3,000 associates and has entailed a total investment of Rs 1,100 crore.