Honda announces massive Rs 920 crore investment to expand capacity at Vithalapur plant

Honda Motorcycle & Scooter India Pvt. Ltd (HMSI) on Thursday announced a major expansion of its fourth manufacturing plant in Vithalapur, Ahmedabad district. The move is expected to increase the plant’s annual production capacity by 650,000 units, taking the total to 2.61 million units once the new line becomes operational in 2027.The company is set to invest approximately Rs 920 crore in the expansion. The plant is also expected to generate 1,800 new jobs in the region.“HMSI currently has four production plants in India with a total annual production capacity of 6.14 million units. In addition, the cumulative production volume reached 70 million units in April of this year, after 25 years since start of production in 2001,” Honda said, quoted by ANI.HMSI currently operates four manufacturing facilities across India with a combined annual capacity of 6.14 million units. With the planned upgrades, Honda expects to raise this figure to around 7 million units by 2027 through similar expansions at its other plants.“Honda has long been investing and expanding its production capacity in India, the world’s largest motorcycle market, to bring joy to its customers,” said Tsutsumu Otani, President & CEO of HMSI. “25 years on, with much support, HMSI has reached the milestone of 70 million units of cumulative production.”Honda’s fourth plant was established in February 2016 with an initial capacity of 600,000 units. Over the years, two additional lines have increased output to 1.96 million units. The upcoming fourth line aims to meet rising demand and further solidify Honda’s position in the Indian two-wheeler market.The announcement also aligns with a global milestone, which recently surpassed 500 million units in cumulative global production of engine and motor-powered motorcycles.Globally, Honda operates 37 production entities in 23 countries and regions, with an annual production capacity exceeding 20 million units.