Japanese auto major Honda Motorcycle and Scooter India on Wednesday said it will invest Rs. 1,775 crore in 2015-16 to expand production capacity to 6.4 million units by the end of 2016. The company will also launch nine new models by the end of this financial year that includes local assembly of the CBR 650F that would be its biggest mobike to be made here.
The company sold 4.45 million units in India in 2014-15, and is targeting sales of 4.7 million units by March 2016 that would make India the second-largest market for the firm globally. It expects the current round of expansion to enhance its position and overtake Indonesia as the largest two-wheeler market.
“In 2015-16, India will be second-largest contributor to Honda’s global sales, accounting for 25%,” said Keita Muramatsu, president and CEO, HMSI. “In the next two years, when we have Gujarat plant and additional capacity in Karnataka plant ready, we may be number one.”
The company is currently investing in an all new scooter factory in Gujarat, which at 1.8 million units per annum would be the largest solo scooter plant in the world. Further, it would also expand its capacity in the Karnataka factory to increase production by another 600,000 units per annum.
Honda is the largest scooter maker in the country today.