Hero Honda to pump Rs 150 crore more in its Haridwar Facility
The country's top motorcycle-maker Hero Honda Motors Limited has unveiled its plan to invest an additional Rs 150 crore by the end of the year in its new facility in Haridwar to raise capacity.
The Haridwar plant, company’s third in the country, spread over 275 acres, will have an initial installed capacity of 5 lakh units and will be scaled up to 10 lakh units by the end of the year. Earlier, the company has invested Rs 450 crore in the plant.
The highly-competitive two-wheeler market has seen players come under severe pressure to maintain operating margins. While intense competition means less margins, increase in prices of inputs like steel and aluminum is threatening profitability.
However, the company declined any plans to increase prices following the rise in input prices which has forced its ompetitors Bajaj Auto and TVS Motors to increase prices for various models.