The country's largest seller of two-wheelers and the world's largest producer by volumes, Hero Honda Motors is believed to face issues as far as high demand of its products is concerned. Notably, the company sold more than 4.6 million units in the fiscal 2009-10 with a substantial chunk out of it coming from the rural and semi-rural market.

In fact, the company is expecting a surge in sales even in the current fiscal and is aiming for a 12-15% projected growth in sales would help it sell about 5.1 to 5.3 million units in the current financial year. The company currently has a collective capacity of 5 million units out of its three plants in the northern region of the country.

The company is expected to meet its target this year but the major problems will begin from next year. The company is currently in process of finalising the site for its fourth unit and is in talks with various state governments, including Tamil Nadu, Karnataka and Gujarat.

However, the unit will not be operational by the end of 2011 which may cause supply issues with Hero Honda.