Honda to build new plant in Rajasthan

Honda Motorcycle & Scooters(HMSI) said Phase-I of its Rajasthan manufacturing facility will be operational by H2, FY’11.  The facility would be set-up at a capital outlay of Rs. 500 crore. It would have a manufacturing capacity of six lakh units in the first phase, he said.

The two-wheeler plant is being set up in the Tapukara Industrial Area of Alwar district under a Memorandum of Understanding between HMSI and the Rajasthan government.

HMSI, a unit of Japanese Honda Motor  which has emerged as the third largest motorcycle seller in the country, has already invested Rs. 1,000 crore in its Indian venture. The company expects to keep its leadership in the scooters segment, but wants to expand in motorcycles and sees its motorcycle sales exceeding scooters by FY’12.

Until Honda’s new plant starts production, there would be limitations on the production of scooters it manufactures.