Honda planning to setup new 2-wheeler plant in India by 2020

Honda Motorcycle and Scooter India (HMSI) is planning to setup a new manufacturing plant in India by 2020. Minoru Kato, President and CEO of HMSI told the media that the company is currently in talks with Honda headquarters in Japan and is awaiting approval for the same.

HMSI has also announced that it plans to invest Rs. 800 crore in FY2019. The fresh investment will enable the company to launch new products in the Indian market and will also help modernize its existing manufacturing facilities. The 2-wheeler maker currently has units in Gurgaon in Haryana, Tapukara in Rajasthan, Narasapura in Karnataka and Vithalapur in Gujarat with a combined annual capacity of 64 lakh units.

HMSI has already produced 61 lakh units in FY2018 and is expecting double-digit growth by the end of the current fiscal. This could lead to capacity constraints and hence the 2-wheeler maker plans to work on increasing capacity of its existing plants as well. However, a final decision on capacity expansion would depend on the market scenario once BS-VI norms come into force from April 2020.

Source: ET Auto