Honda to invest Rs 9.2 bn to expand production capacity of its fourth plant
New Delhi: Honda Motorcycle & Scooter India Pvt. Ltd (HMSI) on Thursday announced plans to expand production capacity at its fourth plant at Vithalapur, Ahmedabad district, Gujarat.
This step is likely to raise the annual production by 650,000 units, which will bring the total capacity of the fourth plant to 2.61 million units and will be operational by 2027.
"HMSI currently has four production plants in India with a total annual production capacity of 6.14 million units. In addition, the cumulative production volume reached 70 million units in April of this year, after 25 years since start of production in 2001," Honda said in a release.
Honda set up its fourth plant in February 2016 and during that time annual production capacity was at 600,000 units. However, subsequently Honda added two more lines to its fourth pant, which brought annual production capacity to 1.96 million units.
Honda is committed to invest approximately 9.2 billion rupees, for the construction of its fourth line, which likely to add 1800 new jobs.
"Honda has long been investing and expanding its production capacity in India, the world's largest motorcycle market, to bring joy to its customers. 25 years on, with much support, HMSI has reached the milestone of 70 million units of cumulative production," said Tsutsumu Otani, President & CEO, HMSI.
Honda expects to increase its total annual production capacity from the current 6.14 million units to approximately 7 million units in 2027 through further expansion of production capacity planned for other plants in India.
On the other hand, Honda's cumulative global production of engine/motor-powered motorcycles has reached 500 million units, 76 years after the company began mass production of motorcycles in 1949 with the Dream D-Type.
Honda has an annual production capacity of more than 20 million units in 23 countries and regions and 37 production entities. The company deliver products and services to customers worldwide through a network of more than 30,000 Honda dealers.
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