Honda commissions third two-wheeler factory in India

Honda commissions third two-wheeler factory in IndiaIndia's second largest two-wheeler manufacturer, Honda Motorcycle & Scooter India has commissioned its third two-wheeler factory in India in Karnataka.

The new unit will allow the company to expand its total production capacity to 4.6 million by financial year 2014 from 2.8 million at present in the country. The plant has been set up in Narsapura Industrial Area, Dist Kolar, Karnataka and occupies a 96-acre site. The plant is expected to begin production of two-wheelers from next month.

Union minister of state for medium and small scale industry Muniyappa and top Honda officials were present at the event to inaugurate the plant in the state. The company has invested Rs. 1,350 crore for the setting up of the plant, which is expected to employ around 4,500 people. It is expected to boost Karnataka's image as a favourite investment destination in diverse industries.

The Japanese automaker is aiming to sell 85 per cent of the total 2W capacity during the current financial year in the country. Honda is aiming at double digit growth in sales this year, even as the automotive market faces a slowdown in the country.