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Honda Motorcycle & Scooter India (HMSI) said on Friday it would expand the capacity of its two-wheeler manufacturing plant at Narasapura in the Kolar district in Karnataka by 600,000 units a year by investing Rs 585 crore in it.
The plant had started operations in June 2013, with an annual production capacity of 1.8 million units. As part of the expansion, the firm will build a new production line within the existing plant site.
Taking into consideration the additional 1.2-million units capacity from the upcoming plant at Vithalapur in Gujarat, which is scheduled to become operational in the first half of 2016, this expansion would catapult HMSI’s overall annual production capacity to 6.4 million units, HMSI said in a statement.
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At Narasapura, HMSI has acquired 119 of acres land from the Karnataka government. In the first phase, it has invested Rs 1,350 crore. Around 4,500 people work at this plant.
Keita Muramatsu, president and CEO of HMSI said, “Honda is strengthening its ‘Make in India’ resolve through steady and strategic investments with a long-term objective of creating 39 per cent additional capacity within three-and-a-half years.”
Realising its ambitious and aggressive business plans for India, Honda has strengthened its position as second largest two-wheeler company in India. During 2014-15, Honda has led the industry with sales growing over 20 per cent, which is double the two-wheeler industry growth on year-on-year basis, the company said.
