Honda Motorcycle & Scooter India Private Limited. has started the construction of its second two wheeler production plant to meet increasing demand for its products. The company has acquired close to 240,000 square meters of land within the Tapukara Industrial Area (near Bhiwadi) in Rajasthan. This lies just 40 kms from the existing plant and 90 kms from Delhi. The new plant is scheduled to start production in the 2nd half of 2011 with annual production capacity of 600,000 units. The Japanese two wheeler manufacturer has also expanded annual production capacity of its existing plant from the current 1.25 million units to 1.55 million units, with a further expansion to 1.6 million units already scheduled for this year. Once the second plant goes live, the company’s annual production capacity will be 2.2 million units. The total investment for new plant will be approximately Rs. 5.0 billion.