Honda Motorcycle & Scooter India (Pvt.) Ltd. (HMSI) on Thursday said it would set up its third two-wheeler manufacturing plant near Bangalore in Karnataka with an installed annual capacity of 12-lakh units by 2013. HMSI, the wholly-owned subsidiary of Japan's auto major Honda, is all set to inaugurate its second plant at Tapukara in Rajasthan on June 1.

“The third plant will be built in the Bangalore area in Karnataka to realise the company's vision to provide good products with speed and affordability. It is scheduled to become operational in the first half of 2013. This capacity expansion plan will increase HMSI's total annual production capacity to 40-lakh units by 2013, including 16-lakh units at the first plant in Manesar (Haryana), 12-lakh units each at the second plant and the third plant, preparing HMSI for further and rapid growth of the market,” the company said in a statement.

Pointing out that India represented the world's second largest motorcycle market only after China, HMSI said motorcycle sales in India reached 1.13-crore units in 2010 (up 30 per cent compared to 2009). HMSI is now investing about Rs.500 crore for setting up its second facility at Tapukara in Rajasthan that will have an initial installed capacity of six lakh units annually. The company has decided to double the annual production capacity of this plant to 12-lakh units in March 2012.

“HMSI's sales have grown steadily, with 2010 sales of about 15.26-lakh units, a growth of 40 per cent compared to 2009, achieving a record high for ten consecutive years,” the statement said. Notably, Honda recently exited from its joint venture in Hero Honda with the Hero Group. HMSI has already announced that it would intensify its focus on the mass market segment, Hero Honda's stronghold, by launching 100-cc bike by next year.