Honda sets up world's largest scooter plant in India

In an attempt to further strengthen its 'Make in India' resolve, Honda Motorcycle & Scooter India (HMSI), inaugurated its fourth two-wheeler manufacturing facility in India at Vithalapur, Gujarat. With this, the company will be expanding its total manufacturing capacity to 5.8 million units per annum.

The company has invested Rs.1,100 crore into the state-of-the-art new facility in Gujarat, which has been set up in a record time of 13 months. An equal sum of money has also been invested by Honda's 22 associated suppliers to set up ancillary plants in the state.

The new facility will only be used to manufacture 1.2 million automatic scooter units annually. By the end of the year, HMSI will boast of an annual manufacturing capability of 5.8 million units, a 26 per cent increase.

Noriaki Abe, Honda Motor COO of Asia and Oceania Regional Operations, said: "For two-wheelers, ASEAN countries contribute 13.8 million sales, which is 80 percent of Honda's global unit sales with production facilities in nine countries. India is the fastest growing economy in the world and one of the most important and fast-growing markets for Honda. This plant would be a benchmark plant in India, not only in terms of volume but also safety, quality, morale and human aspect."

Shinji Aoyama, operating officer and director and COO of Honda's Motorcycle operations, said: "India plays a key role for Honda's two-wheeler business. Today, 25 percent of the total Honda two-wheelers sold across the world come from India. We will continue to invest in technology for the Indian market."