New Delhi: Two-wheeler maker Honda Motorcycle Scooter India (HMSI) has decided to invest around Rs 3 billion, in its plant, by the next three years.

The company would also launch two new models by the coming year (2008).

At a news conference, Shinji Aoyama, chief executive officer of Honda Motorcycle and Scooter India Pvt Ltd said, “The investment is for new models and for capacity expansion at the Manesar plant.”

At present, HMSI operates a manufacturing plant in Manesar, Haryana where it develops three scooter models and two motorbike models.

Mr. Aoyama told that HMSI would unveil a new automatic scooter ‘premium’ during the Auto-Expo in January. He also said that a new motorcycle model would be introduced in the first half of the coming fiscal (2008-09).

However, he didn’t provide details about the two models.

The company has also planned to launch a 100 cc motorbike by the next 3 years, he said.

Over the next three years, Honda will launch up to five new scooter and motorbike models in India, he added.

In 2007/08, HMSI has projected a sales figure of around 888,000 units, which will be stretched to 1 million by the next fiscal (2008-09). HMSI sold 715,000 units in 2006/07.

"In 2010, we will expand capacity to 1.2 million units and sell 1.2 million units," Aoyama said.

Aoyama also said that the decision to open up another plant in India would be taken by 2009.

"In 2011, if all goes well, maybe we will see further expansion. It takes two years to open a facility, so by 2009, we need to decide," he said.