Honda Motor setting up Rs 1,350 cr plant in State

Spread over 3,50,000 sq mt, the plant is scheduled to become operational by April 2013 with annual production capacity of 1.2 million scooters and motorcycles. It will employ approximately 3,000 associates at initial stage of full capacity and see total investment of around Rs 1,350 crore.

The company, with two more facilities at Manesar (Haryana) and Tapukara (Rajasthan), said the third plant will complement the others in serving the vast scooter and motorcycle market in the country. Announcing that the total sales contribution of southern India is 30 per cent, HMSI President & CEO Keita Muramatsu said the new plant will help in maintaining the steady supply of Honda two-wheelers in the region. Muramatsu added that the plant will focus primarily on the demand of the domestic market, which he opined, is one of the fastest growing.

The company was allotted 96 acre of land for the project by the State government. Chief Minister D V Sadananda Gowda, who laid the foundation stone, said the additional need of 25 acre for expansion, would be provided since it would bring development to the region. In addition, more than 15 companies are coming up as ancillaries to HMSI.          

Muramatsu said Honda would be introducing 3-4 two-wheelers in the country sometime next year, without divulging much details. Honda projects that this year, it would achieve 27 per cent growth, selling 21 lakh units. 

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