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

Posted on: Oct 6, 2014 - 11:39am IST

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.

Honda Activa 125 launch
The upcoming facility is reported to have two assembly lines, dedicated to scooters.

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.

Honda Activa 125 front quarter
The plant is expected to reduce the waiting period for the top selling Activa series (Image: Honda Activa 125).

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.

Honda Activa 125 – Image Gallery (Unrelated)

[Source – Times of India]

Next would you like to read more about the , , or more about Honda Motorcycles?
About the Author
Nithyanandh
Nithyanandh K

As a toddler, those wheeled machinery fascinated me even before I knew what they’re called as! So here I'm, petrolhead by birth, Mechanical engineer by qualification and automotive reporter by profession!