Honda India studying second bike plant

Japan’s Honda Motor Co.’s wholly owned Indian unit is looking to build a second plant to raise capacity of motorcycles and scooters to two million units a year by 2010, the Mint newspaper said on Tuesday. So what will Honda India bring out next?

Honda Motor & Scooter India Ltd., which currently has a capacity to produce up to 1.2 million units a year, is conducting a feasibility study on the second plant, it quoted the unit’s president and CEO, Yukihiro Aoshima, as saying.

Rising affluence and poor public transport are expected to take two-wheeler sales in India to 10.2 million units a year by 2012, from seven million in 2006, industry estimates show.

Honda Motor & Scooter hopes to sell 900,000 units in 2007/08, through new model launches, including 100cc bikes, the company said in a statement. It has estimated sales of 720,000 units in 2006/07.

The company competes with Hero Honda Motors Ltd., India’s top motorbike firm, in which Honda Motor owns 26 percent.

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