Karnataka is Honda choice for third two-wheeler plant

Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) has announced its plans to establish a third plant in India at Narsapuram outside Bangalore in Karnataka. This is the first major announcement of a new plant in the automotive sector in current financial year.

HMSI aid it plans to commence production at the new plant in the first half of 2013 with an annual production of 1.2 million units. Meanwhile, the company will expand production capacity at its upcoming second two-wheeler factory that is slated to open on June 1 at Tapukara, Rajasthan. (pictured under construction) The second plant will begin its operations with an initial annual production capacity of 0.6 million units, and later be stepped up to 1.2 million units by March 2012.

HMSI’s total annual production capacity will jump to four million units after all three plants are up and running in 2013.

HMSI recently launched the CBR250R, its first spots bike. The bike carries a retail price of Rs 1.68 lakh and is competitively priced as a result of a significant localization plan that the company implemented. The bike is being sold from 400 Honda Exclusive Authorised Dealerships across the country. Honda and the Hero Group announced their decision to part ways in December 2010.