Honda opens Kolar plant; expects 64% output jump this year

28 May 2013

Two-wheeler maker Honda Motorcycle and Scooter India (HMSI) today inaugurated a plant in Karnataka, which will be its third production in plant in the country.

The 96-acre plant in the Narasapura industrial area of Kolar district is HMSI's most advanced, and will help to "efficiently serve the vast scooter and motorcycle market of India" along with its existing plants at Manesar and Tapukara in northern India, the company said in Bangalore.

The plant has been set up with an investment of Rs1,350 crore. It will start operations from June this year, with a Phase I production capacity of 120,000 units. By the end of the current financial year, it hopes to increase capacity to 18 lakh units.

With the three plants up and running, the company will be able to increase its cumulative annual production by a significant 64 per cent in just one financial year, a company statement said.

The plant will employ approximately 4,500 people, mostly locals. It is also claimed to be HMSI's most environment-friendly plant, with zero liquid discharge.