HMSI inaugurates its 2nd plant in Rajasthan

Honda Motorcycle & Scooter India (Pvt.) Ltd. (HMSI) has inaugurated its second plant at the Tapukara Industrial Area of Rajasthan, which is approximately 90km from Delhi. The new plant built near the Haryana-Rajasthan border, which is also close to the company's first plant at Manesar (Haryana), was inaugurated by Rajasthan Chief Minister Ashok Gehlot in the presence of Japan's Honda Motor Company President and CEO Takanobu Ito and Takashi Nagai, President and CEO, Honda Siel Cars India Ltd. and Honda Motor India Private Limited, Japanese Ambassador to India Akitaka Saiki and a host of other dignitaries. Scheduled to become operational in July 2011 with annual production capacity of 0.6 million units, the two-wheeler arm of Honda Motor Company aims to double the annual production capacity of this plant to 1.2 million units in March 2012. The plant, for which Rs. 860 crore will be invested in the first and second phase, will employ around 3,200 people. In the initial phase, it will be rolling out of scooter Activa and the CB Twister. “The expansion of Tapukara plant will catapult us in the big league and help us cater to the unprecedented demand in the Indian two-wheeler market. By 2013, our total production will reach 40-lakh unit,” HMSI President and CEO Keita Muramatsu said after the plant's inauguration. He also said, “We are here for the long haul. “Our aim is not merely to gain numbers but enhancing the quality and after-sales services of our products.” He went on to add, “If we are able to meet our customer’s expectations by delivering world-class products, volumes will flow in automatically. When asked whether it will be slugging out with Hero Honda to match the latter’s capacity, he said, "We are not in the race to match their capacity but we will ensure that our growth momentum is maintained. We will be focusing on ramping up our distribution network and reinforce our R&D operations.” In order to realise Honda’s vision to provide good products with speed and affordability, the third plant will be built in Bangalore area in the southern part of India. This will enable HMSI to serve the vast two-wheeler market of India more efficiently, together with the first and second plants in northern India. The third plant, that will entail an investment outlay of Rs. 1,000 crore, is scheduled to become operational in the first half of 2013, with annual production capacity of 1.2 million units. This capacity expansion plan will increase HMSI’s total annual production capacity to 4 million units, including 1.6 million units at the first plant, 1.2 million units at the second plant and 1.2 million units at the third plant, preparing HMSI for further and rapid growth of the market.