India is the largest two-wheeler market for Honda globally, surpassing its other larger markets Indonesia and Vietnam. With demand outpacing supply, the company plans to start it fourth and fifth plant in the country and increase the annual production capacity from the current 4.5 million units.

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Hero and Honda’s alliance in the past had given the Japanese manufacturer a deep insight into the Indian two-wheeler market. With a rich heritage of producing commuter and high-performance products alike, it wasn’t too difficult for Honda to bring products to the market. So when the joint venture was terminated, Honda made sure to channelize all its knowledge, resources and prowess in coming out as a victorious and independent company from Hero. Four years since the parting and Honda Motorcycle and Scooter India (HMSI) is the second largest selling two-wheeler manufacturer in the country, while India has turned out be the largest two-wheeler market for the company globally.

Honda stated that India surpassed its other large markets like Indonesia and Vietnam, becoming the world’s largest market for the company in the last two months. Within just few years from riding solo, Honda has shown exponential growth and moved from the fourth position to second in the Indian two-wheeler space. The company further added that despite the overall market growth being slower than usual in the past year or two; Honda’s individual growth was exceptional during the same period.

Honda currently produces 4.5 million units per annum out of its three production facilities located in Haryana, Rajasthan and Karnataka. Work has commenced on the company’s fourth facility located in Gujarat that will start rolling out products by 2017 and will further add 1.2 million units per annum to the overall capacity, while study for the fifth plant will commence this year. Honda expanded its range recently in 100-110cc segment with the Dream Series that has helped them in achieving the numbers, while the Shine motorcycle is already crowned as the world’s largest selling 125cc bike. The company is now working to penetrate further into the rural market, predominantly ruled by Hero MotoCorp.

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