Honda to expand its capacity by investing Rs. 530 crore

The 100% two-wheeler subsidiary of the Japan based Honda Motor company, Honda Motorcycle & Scooter India (HMSI) is intending to invest Rs. 530 crore for various expansion plans like increasing its two-wheelers capacity by this financial year and make ready their new plant in Rajasthan till the next year. T Kawatsu, Group Vice President, HMSI said," We have planned to open second two-wheeler manufacturing factory at Rajasthan by next year by spending Rs. 530 crore. The company claimed a production capacity of around 6 lakh units of two-wheelers at the second two-wheeler plant. HMSI has already targeted to produce 15 lakh two-wheelers in the current fiscal year (2010-11). Kawatsu said that the production ratio is enough us to get a growth rate of 18 percent in the targeted period of time. The company's overall capacity will grow up to 22 lakh," he added. The company has also planned to launch a long products range in the Indian two-wheeler market, that would support the brand to rise their market stake. HMSI has already launched a newly sportier version of Honda Unicorn in 150cc segment, called as Honda CB Dazzler. On the other hand, Bajaj Auto has also launched one another version of Bajaj Discover with 150cc displacement, Bajaj Discover 150cc. Apart from that launch, Indian bike lovers will see more launches in India that includes Yamaha SZ, Yamaha YZF R125 and Honda VFR 1200F.