The Indian two-wheeler market is growing at a steady rate every year. Scooters and Commuters contribute the most towards this growth. It’s no wonder that many major brand are establishing their manufacturing plants in India. The major advantages of manufacturing in India are low cost, availability of affordable skilled labour and some tax benefits. Honda Bikes and Scooters India (HMSI) is one of the largest motorcycle manufacturing companies in the world. It has manufacturing plants in Gurgaon, Alwar and Bangalore which churn out the bikes and scooters offered by the company for the Indian market. Now, HMSI has officially inaugurated its 4th motorcycle plant at Vithalapur in Gujarat.
Honda’s new plant will be unique in the sense that it will be the world’s largest scooter-only plant. Honda currently has about 50-55% market share in the scooter segment in India. Honda feels that it can strengthen its dominance in this segment by the using this all new plant. Company is betting big on the recently announced Navi to succeed. The new factory will churn out the Navi, the Activa, the Dio, and the Aviator.
Honda has invested close to Rs.1000 crores on the new plant. The company has spared no expense to build a state of the art manufacturing unit that includes a lot energy saving and pollution control features. The plant’s suppliers have invested a further Rs.1000 crores to set up ancillary units in and around Gujarat.
The Gujarat plant’s objective is pretty straightforward. It will churn out about 12 lakh Honda scooters annually. This will increase HMSI’s overall production by about 25%. This plant is advantageous to the state of Gujarat and will generate a lot of employment opportunities for job seekers in the state.
The Gujarat plant is constructed with state-of-the art technology. Honda has stated that the plant will be highly eco-friendly and will employ a lot of energy saving techniques. High levels of automation will ensure that human error will be kept at a minimum. Notable features include rain-water harvesting, Zero liquid discharge (prevent pollution), use of LED lights for lighting and use of renewable source of energy (Solar) when possible.
Honda has made its intentions clear. The company wants to dominate the scooter market in India. This plant will certainly help Honda to keep with the demand for scooters in our country. Stay tuned for more news in this section.