Honda to Invest Rs 920 Crores in Gujarat Plant
Honda Motorcycle & Scooter India (HMSI) to invest Rs 920 crore ($108 million) to add a fourth production line at its Vithalapur plant in Gujarat. The move aims to meet rising demand in the world's largest two-wheeler market. The declaration was made at an event celebrating Honda's worldwide achievement of manufacturing 500 million two-wheelers, which took place at the Vithalapur facility close to Ahmedabad.
According to HMSI, the new line, expected to commence operations in the first half of 2027, will enhance the plant's yearly capacity to 2.61 million units, positioning it as one of the largest two-wheeler manufacturing facilities in the world.
HMSI presently runs four manufacturing plants in India—Manesar, Haryana (38,000 units), Tapukara, Rajasthan (1.3 million units), Narasipura, Karnataka (2.5 million units), and Vithalapur, Gujarat (1.96 million units)—boasting a total capacity of 6.14 million units.
The extra fourth line at the Vithalapur facility will boost its yearly production capacity by 650,000 units, raising the plant's overall output to 2.61 million units. As a result of this expansion, HMSI's overall production capacity in India will increase to around 7 million units by the year 2027.
At the same time, Honda intends to establish a new factory focused on electric vehicles at its current site. The facility is anticipated to be functioning by 2028.
The Japanese firm views India as a hub for exporting to worldwide markets. The company intends to introduce at least one electric model each year worldwide.
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HMSI’s CEO, Tsutsumu Otani, highlighted the importance of the investment in bolstering India’s expanding market and increasing exports to more than 62 nations, such as those in Central and South America. The growth will additionally generate 1,800 positions, aiding regional economic development.