Hero Honda may set-up a new unit at Sanand

India's biggest two-wheeler manufacturer, Hero Honda is planning to set up a manufacturing unit in Gujarat. Gujarat has shifted gear to become a major auto hub. Tata Motors has already established a production unit of cheapest car 'Tata Nano' at Sanand. Hero Honda has three plants at Dharuhera, Gurgaon and Haridwar, at present. All plants annual production capacity as above 50 lakh units. The senior government official said,"The company has not yet announced how much land required. A team of senior executives from Hero Honda met officials in the chief minister’s office (CMO) as well as state industries department babus and have requested the Gujarat government to suggest suitable locations. The state government has formally suggested to the company about two new units location for two-wheeler manufacture such as Gujarat Industrial Development Corporation (GIDC) estate in Sanand and GIDC estate in Vadodara district. Hero Honda aims to produce over 45 lakh units in 2009-10, compare with 37 lakh in last fiscal, from its present three facilities in India and will decide to set up a fourth manufacturing unit within the next six months. Hero Honda has planned three special investment locations, at Dholera, Sanand and Changodar, all in the vicinity of Tata Nano plant.