Honda to set up fourth motorcycle factory in India

Honda Motor Co said today, it would build a fourth motorcycle factory in India with initial investment of roughly Rs11 billion and annual output capacity of 1.2 million vehicles, Reuters reported.

The factory, which would be located in Gujarat, would start production in the latter half of the business year ending in March 2016, according to the world's largest motorcycle manufacturer's statement.

The facility would see the creation of about 3,000 new jobs. The plant would manufacture scooters, the demand for which had surged in the world's largest two-wheeler market.

Last month saw Honda expand production capacity at its third motorcycle factory in India by 600,000 vehicles a year. The fourth plant would see Honda's total capacity in India to 5.8 million motorcycles a year, according to the company.

The company has three facilities across Haryana, Rajasthan and Karnataka, and expects that the new plant to be operational by second half of 2015-16, PTI reports.

"Honda is going to establish a fourth facility to produce scooters in India. The plant will be set up in Ahmedabad and have a capacity of 1.2 million units," HMSI president and CEO Keita Muramatsu told reporters.

He added, HMSI would invest Rs1,100 crore in the facility, which would be operational by second half of 2015-16.

The new facility would have two assembly lines for scooters. The company boasts current capacity at 4.6 million units.

HMSI, which makes motorcycles like CB Unicorn and CB Shine in India, today unveiled a new scooter Activa 125 and a bike CBR 650F.

Activa 125 is expected to be available in India in the first quarter of FY'15, while CBR 650F would be available from 2015-16.