Honda to Boost its Annual Production Capacity; Aims to Reach 6.4 Million figure by 2016

India's second largest two-wheeler manufacturer, Honda Motorcycles & Scooters India Pvt. Ltd recently announced that it will expand the production of its third plant situated in Narsapura, Karnataka. It was started in 2013 and currently operates with an annual production capacity of 1.8 million units. The company also revealed that it will additionally invest Rs. 5.8 billion to set up a new production line within the existing site. With this, the new production line will be able to adjoin 6 lac units and extend the plant’s total production to 2.4 million units before the end of 2016.

Honda is also planning to bring its fourth production plant in the country in Vithalapur, Gujarat, which is expected to become operational in the first half of 2016. On the occasion, Mr. Keita Muramatsu, President & CEO of Honda Motorcycles & Scooters India Pvt. Ltd. stated, “Honda is strengthening its ‘Make in India’ resolve through steady and strategic investments with a long term objective of creating 39% additional capacity within 3.5 years. We are planning to increase the number of associates in the plant by approximately 1,900. This investment will provide new opportunities for expansion of brand Honda in the largest two-wheeler market of the world.”

The expansion of the third plant and the introduction of the fourth one will expand the overall production capacity of the Japanese manufacturer to a respectable figure of 6.4 million per year.

Going by the company’s business reports, it has led the industry with over 20% sales growth in the financial year 2014-15, which is two times the two-wheeler industry growth on an year to year basis. Let's take a glance at the company’s year wise production figures by its individual production plants.

. The Manesar plant in Haryana generates 1.6 million units yearly and is operational since financial year 2010-11.

. The company’s second plant at Tapukara, Rajasthan is functioning since financial year 2011-12 produces 1.2 million units per year.

. Honda’s third plant at Narsapura, Karnataka currently shows a production figure of 1.8 million units. With the addition of new production line, it will produce 2.4 million units by the financial year 2016-17.

. The company’s fourth plant is scheduled at Vithalapur in Gujarat and is expected to start its operations in the first half of 2016 with a yearly production of 1.2 million units.

With this calculation and math involved, Honda’s total annual production capacity will sum up to 6.4 million units in the year 2016.