Electric Scooter Briefing November 29

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Honda Expands Factory Capacity in India

$2.3B Investment to Triple Production

Honda Motorcycle & Scooter India PVT, the wholy-owned subsidiary of Honda Motor, has announced it plans to expand production in that country to 5M units per year in five years. The plans call for aggressive expansion of existing facilities in Rajasthan, as reported in May off this year, with the opening of a second plant there expected to ramp up production to 2.2M units per year by 2012.  A third plant to be constructed in the Andhra Pradesh state, will complete the plans, according to the company.

Honda has announced several large volume expansion programs globally in the past 12 months, in India as well as Brazil ( see MMW Oct. 19, 2010 ) suggesting that the OEM's focus is shifting away from premium western markets to the fast-growing developing economies.  The success of exporting low cost motorcycles such as the CBR125 and CBF125 from Thailand to Europe and North America has spurred other Japanese and European OEMs, and even Harley Davidson to explore offshore SKD and CBU production.

The Indian motorcycle market continues to grow, with 2010 sales have exceeding 7M units, an incease of about 17% for motorcycles and 32% for scooters, according to the figures released by the Society of Indian Automobile Manufacturers (SIAM).

via HMSI, Economic Times of India

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