HMSI plans to set up IInd plant outside Haryana

Honda Motorcycle and Scooter India (HMSI) which is the wholly-owned subsidiary of Japanese Honda Motor Company, is looking to set up its second plant outside Haryana after the delay in production in the state for over three months since July. HMSI is considering various options to increase production capacity beyond 15 lakh two-wheelers, which it is likely to exhaust by the next fiscal-end. The company at the same time is also considering to expand its first plant in Manesar, Haryana. The plan to move out from Haryana is part of the strategy to de-risk its business out of single manufacturing location. The auto parts maker Rico Auto faced a month-long labour problem, is also planning to move some of its businesses out of Haryana. Honda had faced persistent labour trouble at its two-wheeler plant in Manesar between July and October suffering financial losses of over Rs 300 crore due to massive drop in production. The restricted supply piled up orders of 1.6 lakh customers, which it is trying to produce in three months. For this, it had to enhance capacity to 15 lakh in the middle of this year. As per the operating officer of Honda Asia Oceania, M Takedagawa, Honda Siel set up a second plant for Honda cars at Tapukara in Rajasthan to take advantage of the supplier base at its first plant in Greater Noida. Bajaj Pulsar 135 and Yamaha R15 are the new bikes in India.