Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI) inaugurated its two-wheeler production plant at Narasapura industrial area in Kolar district on Tuesday.
The plant, touted as HMSI's most advanced and latest plant spread across 96 acres, will help the company to “efficiently serve the vast scooter and motorcycle market of India” along with its Manesar and Tapukara plants in Haryana and Rajasthan.
Under phase one, the plant, which has been set up with an investment of Rs. 1,350 crore, has a production capacity of 12 lakh units. HMSI hopes to increase capacity by another six lakh under phase two, taking the annual capacity to 18 lakh by the end of the current financial year. With three plants, HMSI will be able to significantly increase its cumulative annual production by 64 per cent in just one fiscal.
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Addressing the inaugural function, President and Chief Executive Officer of HMSI Keita Muramatsu said that Honda was the fastest-growing two-wheeler company in India, with domestic sales of over 1.38 crore units. He said that around one-third of the total sales was from the southern region. Mass production of HMSI’s Dream Yuga and Activa would begin at the Narasapura plant from June.
According to a communiqué, the plant will employ approximately 4,500 people, out of which, approximately 90 per cent will be the local youth.
Yoshiyuki Matsumoto, Managing Director, Honda Motor Company and Representative of Development, Purchasing and Manufacturing, Asia Oceania Region, said that “India is one of the important markets for Honda’s overall business with nearly 25 per cent of the global two-wheeler sales.’’
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In 2012-13, Honda sold more than 2.56 crore two-wheelers.