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Gujarat all set to get worlds largest Scooter only Plant

Snapshot: Once operational by the end of 2015, it will have an annual production capacity of 1.2 million units.

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Honda, in the last year or so has become particularly serious about it is efforts in India. Now, they are going next step further and setting up the world’s largest scooter only plant in the country. It will be Honda’s fourth two-wheeler production plant in India, spread across 250 acres. Once operational by the end of 2015, it will have an annual production capacity of 1.2 million units.

This capacity expansion plan will increase HMSI’s total annual production capacity to 5.8 million units, including 1.6 million units at first plant (Haryana), 1.2 million units at second plant (Rajasthan) and 1.8 million units at third plant (Karnataka). This will help Honda to reach customers with increased efficiency in speed.

Speaking about the significance of the upcoming 4th plant in Honda’s global business, Noriaki Abe, Chief Operating Officer, Honda Motor Company Ltd- Asia & Oceania Region, said, “As the World’s biggest two-wheeler market, India is already a priority market for Honda. In the current fiscal 2014-15, Honda aims to sell 18.2 million two-wheelers worldwide and for the first time, India will contribute almost 25% to global Honda sales. We have huge expectations from this project as this will be our flagship and benchmark plant in India in terms of volume, safety, quality, cost, associate skill and moral. ”

Yoshiyuki Matsumoto, Managing Officer – Honda Motor Co. Ltd., said, “I would like to thank the Gujarat Government for their support in setting up the plant. With the fourth plant, we aim to reach closer to the vast market in West which contributes over 25% to Honda business. The new plant will employ approximately 3000 people within first 2 years of commercial production and will entail INR 1,100 crores investment. Honda’s fourth plant 1.2 million units annual production capacity and increase our overall production capacity to 5.8 million units.”

With a presence in more than 40 countries globally, Honda’s worldwide 2wheelersales volume was 17 million units in FY’2013-14. For the first time, India’s contribution crossed the 20% mark globally, making India 2nd largest contributor globally in FY’2013-14.

Read what made Honda to take this decision, here.