 Honda Motorcycle and Scooter India (HMSI) recently announced the construction of a new two-wheeler manufacturing unit in Tapukara, Rajasthan. The plant will be constructed in the Tapukara Industrial Area on a 240,000-squaremetre plot. HMSI plans an estimated Rs 5 billion investment in the new facility, and will employ a workforce of around 3,000 people during the initial production stage. The company expects the plant to be functional by the middle of 2011, with a scheduled annual production capacity of 600,000 units. As of now, the company plans to manufacture only motorcycles at its new facility, while the production of scooters will be continued from its existing facilities.Apart from setting up the new facility, HMSI also plans to expand the annual production capacity of its existing plant from the present 1.25 million units to 1.55 million units. This will further be expanded to 1.6 million units by the next year. The expanded production capacity along with the capacity acquired with the construction of the plant in Tapukara will total 2.2 million units on annual basis. The decision has been taken to meet the growing demand for the company’s twowheeler models in Indian markets. The company has taken a few strategic decisions to meet the diversifications in two-wheeler demands. HMSI has also enriched its current range of two-wheelers with the introduction of new models of the Activa 110cc scooter and CB Twister 110cc motorcycle in the 100–110cc market segment. |
