Honda to invest Rs 300 cr in 3 years

Honda Motorcycle and Scooter India (HMSI) today said it will invest Rs 300 crore as part of its expansion plans in India over the next three years.

The investment would also be utilised in upgradation of the plant capacity in Manesar, HMSI General Manager, Operating Head, (Sales and Marketing) Naresh Kumar Rattan told reporters here.

“The company, which has invested Rs 900 crore since its inception in 2001, will further invest around Rs 300 crore for expansion plans and launch a new range of vehicles in the future,” he said on the sidelines of the launch of Honda’s upgraded scooter ‘Activa’.

HMSI is a 100 per cent subsidiary of Honda Motor Corporation, Japan.

He said the plant has a capacity of around a million units, which would be increased to 1.4 million in six to eight months. “By the end of this financial year, the plant will have a capacity of 1.5 million units,” Rattan said.

The company planned to enter the 100 cc motorcycle category this year and to launch various models in three years, he added. The company sold 1.07 million units last year, of which 460,000 were scooters, 320,000 were motorcycles and the remaining were in other segments. Honda planned to sell around 1.2 million units this year, he said.