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Honda Motorcycles & Scooters India (HMSI) plans to invest around Rs 1,400 crore for adding 18 lakh additional annual capacity for two-wheelers by 2013, company officials said on Wednesday.
The company aims to become a dominant player in the domestic two-wheeler market, which is expected to grow to 20 million units by 2016. The current market size is 12 million units.
“India is one of the most important markets for us, so we're planning several changes. To help meet increasing demand and cut waiting period, we will add capacity. A third factory in South India will also help expand our reach in the country,” Mr Takanobu Ito, President and CEO, Honda Motor Co, Japan, said at the inauguration of the plant.
Of the Rs 1,400-crore investment, Rs 400 crore will be spent on doubling the capacity at HMSI's second plant in Rajasthan to 12 lakh units by mid-2012. The plant was inaugurated on Thursday. The remaining will go towards a third plant in Karnataka which would make 12 lakh units a year by early 2013.
“Honda R&D will also be reinforced and shifted to Manesar from Gurgaon by next year,” he said.
The new technical centre is expected to house 100 people and will work on quality maintenance, homologation and new product development.
At present, HMSI has an annual capacity of 16 lakh units at it first plant in Manesar. The second plant will add six lakh units at full production levels by September.
The company also plans to launch a new scooter and motorbike, besides product refreshments by March next year.
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