Honda Motorcycle and Scooter India Private Limited, the fully owned subsidiary of the Japanese Honda Motor Company, has made an announcement that it will expand its yearly production capacity. The increase will majorly be dedicated to the expansion of the production plant in Narsapura, which is located near Bengaluru in Karnataka. This facility is primarily dedicated to the production of two-wheelers and had started operation in June 2013. Currently, it has a capacity of producing 1.8 million units in a year.
Honda has been working hard to build up its two-wheeler network in the country and will invest nearly Rs. 5.8 billion. With this amount, the company is looking forward to construct a new production system within the plant itself. It has been estimated that the new production line will contribute 600000 units and boost up the yearly production capacity. The total capacity will thus increase to nearly 2.4 million units by 2016-end. Incidentally, the 4th production plant of Honda is expected to become functional by the first half of next year. This will take the total production number to 6.4 million units yearly.
Keita Muramatsu, the President and CEO of Honda Motorcycle and Scooter India, was present at the occasion and commented on this milestone. He said, “Honda is strengthening its ‘Make in India’ resolve through steady and strategic investments with a long term objective of creating 39% additional capacity within 3.5 years. We are planning to increase the number of associates in the plant by approximately 1,900. This investment will provide new opportunities for expansion of brand Honda in the largest two-wheeler market of the world.”
Honda has identified the immense potential, which the Indian two-wheeler market throws to the existing manufacturers. It has thus, adopted an aggressive as well as far-sighted plan for India. It seems to be coming off quite well as the company has established itself as the second largest two-wheeler brand in India. Honda has led the industry with its sales growing to over 20 per cent in the financial year 2014-15, as compared to 10 per cent, which was the market growth for the industry.
