The new Gujarat plant will attract an investment of Rs. 1100 crores and will churn out 1.02 million two-wheelers every year from the facility.

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Honda will be investing Rs. 1100 crores in the new facility to be operational by 2015-16

Honda Motorcycle and Scooter India (HMSI) has signed a state support agreement with the Gujarat government and will be investing in a new two-wheeler facility that will be located at Vithalapur village in Ahmedabad district. The upcoming facility will attract an ivestment of Rs. 1100 crores from the Japanese auto giant and will be providing employment to 2000 local youths, while churning out 1.02 million two-wheelers from the facility on an annual basis.

Honda currently has three two-wheeler facilities located in Haryana, Rajasthan and Karnataka and the fourth upcoming facility in Gujarat is expected to be operational by the second half of 2015-16 fiscal. The company had announced its plans of opening the new facility at the Auto Expo earlier this year that will be producing a range of scooters and will have two assembly lines for faster production.

In more recent times, Gujarat has turned out to become the automotive manufacturing hub with more and more automakers setting up shop in the state. After Tata’s Nano plant in Sanand, other global manufacturers including Ford and Maruti Suzuki have also come to the state. Honda retails a range of scooters in the country including the Activa series, Aviator and Dio along with several motorcycles. The company’s current total annual capacity stands at 4.6 million units.

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The new facility will produce 1.02 million units per year & will have 2 assembly lines