Honda Motorcycle & Scooter India Pvt. Ltd., Honda's wholly-owned subsidiary, is planning to build a second motorcycle production plant at an investment of Rs.470 crore or 8.9 billion yen to meet the increasing demand in the rapidly growing motorcycle market in India, reports say.
To construct this plant, HMSI is on the look out for 240,000 square meters of land in and around the Tapukara Industrial Area (Near Bhiwadi), Rajasthan, which is 40km from the existing plant and 90km from Delhi.
The new plant will start commercial operations in the second half of next fiscal with annual production capacity of 600,000 units. Further, HMSI plans to expand annual production capacity of its existing plant to 1.55 million units from the present 1.25 million units by this month-end, with a further expansion to 1.6 million units already scheduled for next year.
HMSI's total annual production capacity will be 2.2 million units, once the second plant is commissioned. The new plant will employ around 2,000 associates at initial stage of full capacity.
India represents the world's second largest motorcycle market next to China, and industry-wise motorcycle sales in India for 2009 touched 8.8 million units, up 19% compared to 2008.
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