Honda To Increase Annual Production Capacity To 7 Million Units

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  • Oct 5, 2018
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The company has set aside a budget of Rs 630 crores for this endeavour

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Honda 2-Wheelers is the second biggest bikemaker in India, trailing only behind Hero MotoCorp. To catch up with competition and clinch the top spot, Honda is planning to expand its production capability. The Japanese bikemaker has announced that it'll soon be expanding the production capacity of its 4th two-wheeler production plant in Vithalpur, Gujarat.

For this, the company will be investing Rs 630 crores, which will help in further expanding its production capacity by 0.6 million units, taking it to 1.8 million units from the current 1.2 million.
This will be done by adding a new assembly line alongside the existing one. In total, this will increase the annual production of the company to 7 million units. Honda plans to achieve this number by the year 2020.

Honda has four production plants located across the country - in Harayana, Rajasthan, Karnataka and Gujarat. Out of these, the plant in Gujarat is focused solely on the production of Honda’s scooter lineup. Considering the Honda Activa has been the highest selling two-wheeler of the country for some time now -- so much so that an Activa is sold every 8 seconds -- the decision to increase its capacity doesn’t come as a surprise.

Here’s what the company had to say -

Press Release

New Delhi, India, October 04, 2018–Honda Motorcycle & Scooter India Pvt. Ltd., the 100% subsidiary of Honda Motor Company, Japan today announced that it will expand the annual production capacity of its 4th two-wheeler production plant.

Honda 2Wheeler’s fourth production plant is located at Vithalapur area in the western state of Gujarat near Ahmedabad. Inaugurated in February 2016 with a production capacity of 0.6 million units initially, the factory was expanded to 1.2 million capacity in June 2016.

Expanding the joy of riding with speed and vitality, Honda 2Wheelers will additionally invest 6300 million rupees to build a new production line within the existing plant site. The new production line will add 0.6 million units and increase the total annual production capacity of scooters only facility at Vithalapur to 1.8 million units by the year 2020.

Speaking on the occasion, Minoru Kato, President & CEO - Honda Motorcycle & Scooter India Pvt. Ltd. said, “Over the years, Honda has been investing and expanding its capacity to enhance customer’s joy in the largest 2Wheeler market of the world. The additional capacity at our 4th factory reinforces our commitment to serve our customers faster, who have reposed their trust in brand Honda.”

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