Japanese auto major Honda Motor Co.’s two-wheeler subsidiary, Honda Motorcycle & Scooter India (HMSI), will invest Rs.585 crore to increase production capacity at its plant in Narsapura, Karnataka, by six lakh units, taking the overall annual capacity to 24 lakh units.
HMSI, which expects additional capacity to be operational before the end of 2016, said the company planned to add about 1,900 employees at the plant.
HMSI President and CEO Keita Muramatsu, in a statement, 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 3-5 years. This investment will provide new opportunities for expansion of brand Honda in the largest two-wheeler market of the world.”
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HMSI said combined with the additional capacity of upcoming fourth plant (in Gujarat), which is scheduled to become operational in the first-half of 2016, this expansion would increase two-wheeler makers’ overall annual production capacity to 64 lakh units.
HMSI’s two other plants are at Manesar in Haryana and Tapukara in Rajasthan.