HMSI all set to announce fourth plant in Gujarat, plans 2 new models

September 4, 2013: Honda Motorcycle & Scooter India (HMSI) is all set to announce its fourth plant in Gujarat that will go on stream in Q4 of 2014 or by January 2015. The plant is likely to be located at Vithalapur, 66km from Sanand and 50km from Maruti Suzuki’s second manufacturing facility.

The first model to roll out from the plant will be a new 109cc Activa scooter (codenamed KWPH) that is expected to have a production capacity of 450,000 units annually.

Other models are currently in the finalisation stage, according to sources in the know. Overall, the Gujarat manufacturing facility is expected to have a production capacity of 1.8 million units per annum. At present, the company’s Manesar, Tapukara and Narsapura plants together account for four million units per annum capacity.

Earlier, HMSI was mulling a fourth plant in Bangalore but due to certain issues it has decided to locate the fourth facility in Gujarat in line with its long-term plan of having seven manufacturing sites in India by 2020. The target, say industry sources, is likely to be reached by 2018 in terms of setting up new production units.

Honda is believed to be moving step by step studying the market to see where its products are not present and catering to local areas with small plants.

New scooter coming up

Also in the pipeline is a new scooter to be launched in September (codenamed K24A), again a 109/110cc model. It will be produced at Manesar and expected to roll out initially as 700 units per month. By the second year, HMSI plans to slowly ramp up production to 100,000 units per annum.

Honda’s third plant at Narsapura in Karnataka currently produces the Dream Yuga motorcycle and Activa scooter and is also likely to roll out the Dream Neo from November. Production of the Neo had started in the Manesar plant in May this year. From December 2013, the Karnataka plant is also expected to roll out a face-lifted edition of the 125cc CB Shine motorcycle (codenamed KTEM). It is pegged to have a production capacity of 250,000 units, say sources.

Honda's technical centre in Manesar is also believed to be working on developing a sub-100cc motorcycle likely to be launched in 2015. The manufacturer is also working on reducing costs further in the 110cc segment with a completely new series of mass commuter bikes to roll out in 2016.

SHOBHA MATHUR

Photograph: The Activa production line at the third plant, in Karnataka.