Honda Motorcycle and Scooter India Pvt Ltd inaugurated today the second assembly line of its fourth manufacturing plant at Vithalapur, Gujarat. This plant, which is the company’s ‘scooter only’ manufacturing facility now has an additional annual production capacity of 600,000 units, bringing total capacity to 1.2 million units per year. This expansion also now brings the total combined annual production capacity of HMSI’s plants in India to 5.8 million units.
The Honda Vithalapur plant is claimed to be its facility achieving ‘fastest ever expansion’ to 100 % capacity creation in just four months since inauguration. The company said it plans to achieve 100 % production capacity of its new second line before the festive season in October. The second assembly line is an exclusive scooter line and will produce only the Activa for now, noted HMSI.
Keita Muramatsu, President and CEO, HMSI, said India is not only the largest two-wheeler market, but also going to be the top contributor to Honda global two-wheeler sales in FY2016-17. Scooterization, a trend seen earlier in developed markets of the world, is firmly driving the Indian two-wheeler momentum today, he added. The scooter segment is growing at 30 % compared to 15 % growth of two-wheeler industry, noted Muramatsu.
The new second assembly line addition further supports Honda in cementing its leadership in scooter segment, noted YS Guleria, Senior Vice President, Sales and Marketing HMSI. He said Honda’s Activa automatic scooter is now the India’s largest-selling two-wheeler in 2016, ending the 17-year old monopoly of motorcycles.