Honda Motorcycle & Scooter India (HMSI), the second largest two-wheeler company in India inaugurated its third two-wheeler production plant at Kolar in Karnataka.
Spread across 96 acres, the plant is situated at Narsapura Industrial Area, which is around 52km from Bangalore. The new plant employs approximately 4,500 associates and entails a total investment of Rs 1,350 crores. Starting operations from this June, Honda's new plant shall have 12 lakh units production capacity in Phase I.
Aiming at market leadership, the company also announced additional increase of 6 lakh units capacity in phase 2 of this plant taking its annual capacity to 18 lakh units by end of this fiscal year.
The third plant enables HMSI to more efficiently serve the vast scooter and motorcycle market together with the existing Manesar and Tapukara plants in northern India, said the company.
With its three plants, Honda plans to significantly increase its cumulative annual production capacity by 64% in just one fiscal.
Elaborating on the company's plans, Keita Muramatsu, president & CEO, HMSI, said: “With the inauguration of our 3rd plant, which is 2,200 km from the two existing plants in North region, Honda aims to deliver high quality and advanced 2Wheeler products of low CO2 emissions to the customers faster in the South region. The expanded production capacity will be further supported by aggressive growth in network to 2500 outlets and rapid new product introduction as we aim for market leadership.”