Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) on Monday commenced the construction of its second two-wheeler production plant at Tapukara Industrial Area (near Bhiwadi, Rajasthan) to meet increasing demand in the growing domestic motorcycle market. HMSI is investing around Rs. 500 crore in the new plant that will be ready by mid-2011 and will have annual capacity of 6-lakh units.
Reaches peak capacity
“We have reached our peak capacity at Manesar plant, so we are starting our second plant at Tapukara. Mass production in the second plant will start by the second-half of 2011. Once fully operational, the plant is expected give employment to about 3,000 people,” HMSI President and CEO Shinji Aoyama said at the foundation-laying ceremony at the plant site.
Stating that HMSI was yet to decide on the models to be produced at the new plant, he said: “Depending on the market demand, we can expand the output up to 12-lakh units annually, while the investment can go up to Rs.1,100 crore.” HMSI had already increased capacity at its Manesar plant from 12.5-lakh units to 15.5-lakh units, while it will be further expanded to 16-lakh units by next year. When its second plant goes on stream, the company's total production capacity will be 22-lakh units annually.
Referring to the sales of HMSI, Mr. Aoyama said they were expecting a growth of over 20 per cent this fiscal.
