Honda lays foundation stone for third plant in Karnataka

Narsapur, Karnataka: Honda Motorcycle and Scooter India (HMSI), Honda's wholly-owned two-wheeler production and sales subsidiary in India, today laid the foundation stone for its third two-wheeler production plant in the country at Narsapur, in Karnataka.

Spread across 3,50,000 square metres, the plant at Narsapur Industrial Area, 52 km away from Bangalore, will be operational by the first half of 2013, with an annual production capacity of 1.2 million units in the first phase through an investment of Rs 1,350 crore, HMSI President and CEO Keita Muramatsu told reporters here.

[caption id="attachment_95629" align="alignleft" width="380" caption="The plant would increase HMSI's total annual production capacity to 4 million units. Reuters"][/caption]

"Subsequently, the capacity will be enhanced to 1.80 million vehicles per annum and will provide employment opportunities to 3,000 people," he said.

Utilising production technologies refined at the Manesar and Tapukara plants as a starting point, HMSI will strive to improve process ergonomics and employ more advanced automation and other measures to reduce the burden on associates at the Narsapur plant, Muramatsu said.

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The plant would increase HMSI's total annual production capacity to 4 million units, including 1.6 million units at the first plant at Manesar (Haryana), 1.2 million units at the second plant at Tapukara (Rajasthan) and 1.2 million units at

the third plant planned at Narsapur, HMSI Vice-President (Sales and Marketing) N K Rattan said.

India is the world's second-largest motorcycle market after China.

Industry-wide two-wheeler sales in India reached 11.32 million units in 2010 (up 30 per cent compared to 2009), he said.

HMSI's sales have registered steady growth, with 2010 sales approximating 1.526 million units (up 40 per cent from 2009), a record high for the tenth consecutive year, he said.

HMSI has a current product line-up of three automatic scooters (Activa, Dio & Aviator) and six motorcycles (CB Twister, CBF Stunner, CB Shine, CB Unicorn, CB Unicorn Dazzler and CBR 250R).

PTI