Honda's 2-wheeler arm for India to invest Rs 1,400 cr, inaugurates 2nd plant

Takanobu Ito, president and chief executive officer, Honda Motor Corporation (HMC), today said the company would focus on introducing good products in the two-wheeler segment with speed, affordability and low carbon dioxide emissions to build business in India after termination of the joint-venture, Hero Honda, with the Munjals’ Hero group.

Ito, who was present at the inauguration of Honda Motorcycle and Scooter India’s (HMSI) second plant in Tapukara, Rajasthan, said the new plant would play a significant role in not only expanding business in India but also in the company’s global operations. Ito said, “Our brand new plant is not only important for our operations in India but also for our business globally. India is an important market and we want to deliver good products to our customers here without making them wait.” HMSI is looking at investing Rs 1,400 crore to expand capacity at Tapukara and to set up a new facility near Bangalore this year.

The Tapukara plant would commence production in July this year and would have an initial capacity to roll out 600,000 units per annum. Honda’s entry-level 110cc motorcycle, CB Twister and best-selling scooter Honda Activa, would be manufactured at the plant. Come September, HMSI would invest another Rs 400 crore to double production capacity at the facility to 1.2 million units per annum.

The fresh infusion would take HMSI’s total investment in the country to Rs 2,250 crore. Additionally, the company has also firmed up plans to invest around Rs 1,000 crore to set up a third unit at Narsapuram near Bangalore. The proposed plant would have an installed capacity to manufacture 1.2 million units annually and would be ready in 2013. HMSI’s Manesar facility has the capacity to manufacture 1.6 million units per year.