Report - Honda signs agreement with Gujarat government to set up INR 1,100 Cr two wheeler plant

To emerge as the world's largest scooter manufacturing facility.

Honda Motorcycle and Scooter India (HMSI) has formally entered into an agreement with the government of Gujarat to set up a two wheeler plant at Vithalapur in the Ahmedabad district.

The State Support Agreement (SSA) was signed by HMSI's CEO Mr. Keita Muramatsu and Mr. DJ Pandian, the additional chief secretary for industries and mines, government of Gujarat, in the presence of the state's chief minister Mrs. Anandiben Patel.

As per the agreement, the Japanese automaker will set up a two wheeler manufacturing facility that will have an annual production capacity of 12 lakh units. To be located near the Japanese industrial estate, the factory is estimated to create 2,000 jobs.

Earlier reports suggest that the upcoming facility would be a dedicated unit for scooters and could become the world's largest scooter manufacturing plant. With Honda's domination of the automatic scooter segment in India, a dedicated facility would go a long way in reducing the waiting periods for the top selling Activa series and the Dio.

Also read: Honda Cars India to set up its third plant in Gujarat

The Gujarat plant will be the firm's fourth unit in the country, taking the cumulative annual production capacity to 58 lakh units. Currently, the company operates manufacturing plants at Manesar in Haryana, Tapukara in Rajasthan and Narasapura in Karnataka.

[Source - Times of India]