Hero Honda to spend Rs 800 crore on expansion

Hero Honda to spend Rs 800 crore on expansion

With Bajaj Auto closing in on its dominating market share, Hero Honda has said that they would be spending close to around Rs 800 crore on enhancing their production capabilities.

The company is planning to establish a Greenfield plant in Haridwar. This plant would have a capacity of half a million units. It would be setup by the middle of next year. Hero Honda MD Pawan Munjal spoke on these plans: “The initial investment in the new plant will be Rs 400 crore, which will take the capacity up by half a million units. The initial plans are to make Splendor Plus and Passion Plus at the new facility, and possibly make the other models too once the capacity is ramped up.”

This new plant would help the company increase its production capabilities to 4.4 million units by mid next calendar.

Hero Honda is also considering setting up another Greenfield facility in Rajasthan. They are not alone as both Bajaj Auto and TVS are also working on expanding in the Indian market.