Honda opens new plant in India

Honda Motorcycle & Scooter India (HMSI) on 1st June inaugurated its second two-wheeler plant in Tapukara Industrial Area.

Initial capacity of the plant, built at a cost of Rs. 4.6 billion (US$ 102 million), will be 600,000 units annually, while its second phase will be completed by March next year with an additional investment of Rs. 4 billion, which would take the plant’s total installed capacity to 1.2 million units.

The new plant built near the Haryana-Rajasthan border, which is also close to the company’s first plant at Manesar (Haryana. HMSI’s Tapukara plant will employ around 3,200 people and manufacture scooter Activa and 110cc bike CB Twister.

HMSI, has already announced setting up of a third plant near Bangalore with an investment of about Rs. 10 billion. This plant is likely to become operational by mid-2013 with an installed capacity of 1.2 million units annually.

Mr. Muramatsu said:”We will focus on improving our products and give improved service quality to become a market leader in India. “I don’t think we will be looking at matching the capacity of Hero Honda but what we are looking at is the growth of the market and we have already opened our second plant,” he added. Honda plans to launch more models to tap the lucrative Indian market.