Honda planning another bike manufacturing plant in India

Honda planning another bike manufacturing plant in India

Japanese auto major Honda is rumored to be considering establishing another bike manufacturing plant in the Indian market.

The company plans to invest around US$417 million to build a new motorcycle plant in India by 2010.

This would help Honda boost local production in the country to 7 million bikes a year.

This news was first published in a report by the Nihon Keizai newspaper. This new plant is expected to have an annual capacity of 1.5 million motorcycles.

Hero Honda will build the factory at a site near Haridwar in northern India for Honda. This new unit would focus on manufacturing the 100cc motorcycles, which are hugely popular in the Indian market.