Honda Motorcycle India To Invest Rs 920 Crore For Fourth Line In Gujarat Factory

Honda Motorcycle & Scooter India (HMSI) will invest Rs 920 crore rupees ($108 million) to add a fourth production line at its Vithalapur plant in Gujarat, the company said on Thursday. The move aims to meet rising demand in the world's largest two-wheeler market.

The announcement came during an event marking Honda's global milestone of producing 500 million two-wheelers, held at the Vithalapur facility near Ahmedabad. 

The new line, set to start operations by the first half of 2027, will boost the plant's annual capacity to 2.61 million units, making it one of the largest two-wheeler manufacturing sites globally, HMSI said.

HMSI currently operates four manufacturing facilities in India—Manesar, Haryana (38,000 units), Tapukara, Rajasthan (1.3 million units), Narasipura, Karnataka (2.5 million units), and Vithalapur, Gujarat (1.96 million units)—with a total capacity of 6.14 million units.

The additional fourth line at the Vithalapur facility will add 650,000 units to its annual production capacity, increasing the plant's total output to 2.61 million units. With this expansion, HMSI's total production capacity across India will rise to approximately 7 million units by 2027.

Meanwhile, Honda also has plans to set up a new plant dedicated for electric vehicles within the premises of its existing facility there. The plant is expected to be operational in 2028.

The Japanese company is looking at India as an export base for global markets. The company has plans to launch atleast one electric model every year globally. 

HMSI’s CEO, Tsutsumu Otani, emphasized the investment’s role in supporting India’s growing market and expanding exports to over 62 countries, including Central and South America. The expansion will also create 1,800 jobs, supporting local economic growth.

HMSI also celebrated its 25th year in India and a local milestone of 70 million two-wheelers produced. The company, known for its Activa scooter, reiterated its commitment to carbon neutrality by 2050 and zero traffic-related pollution for its motorcycles and cars globally by the same year.

As part of its community initiatives, HMSI donated 50 Quick Response Team vehicles to the Gujarat Police. The company’s social programs have impacted 3.2 million lives in Gujarat through water conservation, healthcare, and agriculture support while promoting workforce diversity, claimed the company’s MD & CEO.

The expansion has to be seen in the context of HMSI's stated ambition to replace Hero MotoCorp as India's largest two-wheeler maker. In January Tsutsumu Otani, President, CEO, and Managing Director of HMSI, emphasized Honda’s goal to capture the largest market share and make India an export hub, leveraging automation and local supplier cultivation. 

Since their 2011 split, Hero has dominated motorcycle sales in India, particularly in rural markets with models like Splendor, while HMSI leads the scooter segment with Activa, holding over 60% market share.

HMSI, which is currently the second largest two-wheeler with a share of around 26% in the domesticmarket, has set its sight on becoming the number one player in India, outpacing Hero MotorCorp. 

Honda has seen robust growth in volumes over the recent years with strong demand for scooters and 125-150cc motorcycles. Over the last couple of years, Honda has significantly reduced the volume gap with its erstwhile partner Hero MotorCorp. 

In the domestic market here, Honda has aggressively grown its volume from 3.87 million units in 2020-21 to 5.33 million units in 2024-25. The automaker exported around 5 lakh units in the last financial year.

Autocar Professional has exclusively reported that Honda laid out an ambitious roadmap to scale its annual production up to 7.7 million units annually by FY30, signaling its most aggressive push yet to challenge Hero MotoCorp’s dominance in the Indian two-wheeler market.

For FY26 alone, the company is targeting 6.26 million units, up from 5.86 million in FY25, representing a 7% year-on-year increase. The company is aiming to grow its exports by double digits to 5.6 lakh units versus 5.05 lakh units it shipped in FY24, reinforcing India's growing role as an export hub.