Honda Goes Berserk! To Increase Capacity Yet Again – to 6.4 Million Units

Honda Motorcycle and Scooter India has in an official communication has announced their intent to kill everything they see on their way! In another capacity hike, they are going to increase their annual capacity to 6.4 million units by 2016. To achieve this they are going to increase the capacity of their existing third two-wheeler plant which was commissioned in the financial year 2013-14.

This will see an increase in production of 6 lakh units form the plant located in the Narsapura in Karnataka, near Bangalore thanks to an added investment of Rs 585 crores. The annual production capacity of this plant inaugurated in June 2013 is at present pegged at 1.8 million units. By the end of 2016, they aim to have an additional production line operational in the same facility, bringing up the total to 2.4 million units annually.

Their 4th plant in Vithalapur, Gujarat, which is an all scooter plant, is expected to be operational by the first half of 2016, adding 2.4 million units to the total tally. This expansion is a part of their long term objective of creating an additional 39 per cent capacity within 3.5 years. They also plan to increase the number of associates in the plant by approximately 1,900.

So, quite clearly Honda has their eyes set on that number one position and they are after the throat of Hero, which doesn’t seem to be very stable at this moment. It will be fun watching these two giants fight for supremacy…