Honda to invest Rs 920 crore in expansion of Vithalapur plant in Gujarat
AHMEDABAD: Honda Motorcycle & Scooter India Private Limited (HMSI) on Thursday announced it will invest Rs 920 crore to expand its manufacturing capacity at the Vithalapur plant in Gujarat by adding a fourth production line.
This will increase the two-wheeler plant's capacity by 6.5 lakh units, taking the total capacity to 26.1 lakh units by 2027. The expansion will make it Honda's largest motorcycle assembly plant globally.
The new line will focus on manufacturing 125cc class motorcycles and is expected to generate 1,800 new jobs in the region. Once operational, the new line will help boost HMSI's total annual production capacity across its four Indian plants from the current 61.4 lakh million units to nearly 70 lakh units.
T
sutsumu Otani, president and CEO of HMSI, said, "Honda has long been investing and expanding its production capacity in India to bring joy to its customers. With the additional investment in our fourth plant, Honda will continue to deliver attractive products and services to its customers around the world who have higher expectations and trust in the company and further solidify its Indian motorcycle business.
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The Vithalapur facility began operations in Feb 2016 with a production capacity of 6 lakh units. Within months, in June 2016, capacity doubled with a second line. A third line, commissioned in Jan 2024, pushed annual output to 19.6 lakh units. This April, HMSI celebrated a major production milestone, crossing 7 crore units since starting operations in 2001.
Nearly 30,000 units are exported from the Vithalapur unit every year.
These achievements comes on the back of sustained demand for its popular models, including the Activa, Dio, Unicorn, and its newly launched electric variants like the Activa e: and QC1.
HMSI, a wholly owned subsidiary of Honda Motor Co., Japan, began operations in 2001 and is headquartered in Manesar, Haryana. The company currently employs around 23,000 people across its four plants located in Haryana, Rajasthan, Karnataka, and Gujarat.
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