Honda to enhance capacity to four million units

Currently, the company has been producing 28 million units of motor cycles, scooters from 2 plants in commission

Honda Motorcycle and Scooter India (HMSI) Private Limited would enhance the production capacity to 4 million with the commissioning of its Narsapura plant in Karnataka.

At present, HMSI—a 100 per cent owned subsidiary of Japan’s Hero Motor Company Limited—had been producing 28 million units of motor cycles and scooters from the two plants it has in Manesar (Gurgaon) and Alwar (Rajasthan). The third plant in Narsapura (Karnataka) had started the production recently.

“The new plant (in Narsapura) has a capacity to produce 1.2 million units and there is provision to add another 600,000 units to the capacity,” P Rajagopi, divisional head of HMSI for Central India, told Business Standard.

The company could think of utilising the option of adding another 600,000 units to the capacity next year, he added.

But the production expansion of the company would depend on the market response to the new bike Dream Neo it launched in the Chhattisgarh market today. The 110 cc bike had been marketed as most affordable, high mileage and fuel efficient. The company would be targeting potential customers in the age group of 30-40 years from semi urban and rural pockets.

“Our main concentration now is on Dream Neo,” Rajagopi said, adding that after its success the company would think of expansion projects. The priority of the company is to promote the project it had launched.

The next target for the company would be to ride out a 100 cc bike.

The company official said the Karnataka plant of HMSI had gone on stream and would later go to the full production.

The 1.2 million units produced from the plant would take the capacity of Honda vehicles to 4 million.

The Manesar (Gurgaon) plant is producing 1.6 million while the Alawar plant in Rajasthan is producing 1.2 million units.

Rajagopi said in India, Dream Neo is the first motorcycle based on revolutionary Honda Eco Technology (HET) that combines provide improved pistol and combustion chamber design with the help of squish bank to increase compression ratio and fuel efficiency.