Wednesday, June 2, 2010

HMSI lays the foundation stone for its second production plant

Honda Motorcycle & Scooter India Private Limited. (HMSI), Honda’s wholly-owned motorcycle production and sales subsidiary in India, today starts the construction of the second 2wheeler production plant to meet increasing demand in the rapidly growing motorcycle market in India.

To build the second plant, Honda has acquired approximately 240,000 square meters of land within the Tapukara Industrial Area (Near Bhiwadi), Rajasthan, which is approximately 40km from the existing plant and approximately 90km from Delhi. The new plant is scheduled to become operational in the 2nd half of 2011 with annual production capacity of 600,000 units.

Further, HMSI has expanded annual production capacity of its existing plant from the current 1.25 million units to 1.55 million units, with a further expansion to 1.6 million units already scheduled for this year. As a result, HMSI’s total annual production capacity will be 2.2 million units when the second plant becomes operational. The new plant will employ approximately 3,000 associates at initial stage of full capacity. The total investment for new plant will be approximately Rs. 5.0 billion.

Utilizing production technologies refined at the existing plant as a starting point, Honda will strive to improve process ergonomics and employ more advanced automation and other measures to its new plant. The new plant will also be more environmentally responsible plant by proactively reducing energy consumption during production and by employing other environmental measures such as water recycling.

Honda keeps on enhancing its product lineup to meet the diversified needs of the Indian 2wheeler customers, with last year’s full model change of the Activa 110cc scooter, one of the company’s best-selling products, and by introducing the CB Twister 110cc motorcycle in February 2010 in the 100-110cc market segment, which accounts for approximately 50% of total motorcycle market. Recently HMSI also launched the new CB Unicorn Dazzler, the 150cc bike, a great combination of style & performance for the young customers. The decision to build the second motorcycle production plant was made to better accommodate a further increase in demand in India.

The inauguration ceremony was held under the august presence of Hon’ble Chief Minister of Rajasthan, Mr. Ashok Gehlot, Hon’ble Japanese minister of political, Mr. Naoki Ito, Mr. Fumihiko Ike, Managing Director & COO of Honda Asia and Oceania; Mr. Takashi Nagai, President & CEO Honda Siel Cars India and Honda Motor India, Mr. Shinji Aoyama, CEO & President, Honda Motorcycle & Scooter India Pvt. Ltd. along with a host of other dignitaries from state Government, District administration and Honda group companies.

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