Honda Motorcycle and Scooters India Limited, a 100% subsidiary of the Japanese auto major Honda Motor Company and a cousin to the market leader Hero Honda in the Indian market has recently announced that the company will be investing close to Rs. 530 crore on its expansion plans in the Indian market.

While the investment figure announced will devote a major chink to the upcoming new plant of the company in Rajasthan that is expected to be operational by next year but a significant part of it will go into strengthening its distribution network in the Indian market.

T Kawatsu, Group Vice President, HMSI said that the company expects to spend close to Rs. 530 crore expansion on its various expansion plans. Kawatsu also highlighted the fact that the new plant will have an overall capacity to product six lakh units on an annual basis in the Indian market. Notably, with the Rajasthan plant getting operational; it will take the total capacity of the company to close to 22 lakh unit on an annual basis. The company is targeting unit sales of 15.5 lakh vehicles in 2010-11.