To continue with its leading position in the Indian two-wheeler market, Honda Motorcycles and Scooters India has inaugurated its second manufacturing plant in Tapukara, Rajasthan. The new plant will help Honda to supplement its production capacity to meet the increasing customer demand without much delay.
The new unit, spread across 2.4 lakh sq. mts. and built at a cost of Rs. 460 Cr. , has the initial capacity of 6 lakh units and Honda will double it by 2012 by investing Rs. 400 Cr. more. It will provide employment to around 3200 people for manufacturing.
With such steps Honda is trying to rejuvenate its position after the separation from the Hero group. It also has plans of setting the third plant spread over 3.5 lakh sq. mts. , in Narsapuram, Karnataka by 2013 with an investment of Rs. 1000 Cr, producing 12 lakh units per annum. Both these setups will help Honda reach an annual production capacity of 40 lakh units in 2013.
The new plants would definitely reduce the long waiting time for the customers of Honda Bikes including those of Honda Activa and Honda CB Twister as Tapukara plant will produce that two and also Honda CBR 250R. The customers are also going to benefit the improved products and improved service quality as:
Referring to HMSI's competition with the Honda Group's erstwhile joint venture partner Hero Honda, President and CEO Keita Mr. Muramatsu said they were not planning to match the latter's production.
“We will focus on improving our products and give improved service quality to become a market leader in India.
Honda is also planning to grab the semi-urban and rural areas as:
According to HMSI Vice-President (Sales, Marketing and Corporate Affairs) N. K. Rattan, “We are also focusing on increasing our reach, particularly in semi-urban and rural areas”.