Saturday, April 2, 2011

Honda Third Plant In India


After being the pioneers in the world of manufacturing two wheelers throughout world, the two wheeler Japanese Automobile company Honda got itself separated from joint venture that existed successfully for almost 26 years, few months back. Now Honda has started independent manufacture of its bikes with the brand name Honda Bikes. The Honda Bikes in India are now being manufactured under the auspice of Honda Motorcycle and Scooter India Limited (HMSI), which within the short span of ten years of its establishment has emerged as the leader in Indian scooter market. Honda Third New Plant: With an objective of meeting an increase in demand of Honda Bikes, the company is planning to set up Honda Third New Plant to increase the production of Honda Bikes in India. Honda This was reported by the renowned commercial newspaper Business Standard. Talking to the news persons, the HMSI President and Chief Executive Officer, Shinji Aoyama, said, “We are the number one two wheeler brand in the world and would want to be the number one player in India as well. Our current sales volumes do not reflect the actual demand for our products in the market. Our dealers are not being able to cash in on many potential sales due to constraints in supply. The additional capacity from our second plant too, is expected to be exhausted immediately. We have to set up a third plant to boost volumes in India.” However it is not yet decided that where the Honda Third New Plant will be established, however as revealed by the Honda sources company plans to set up Honda Third New Plant in southern or western region of India. The main reason behind this is that almost 30% of the total demand for Honda Bikes is from southern states like Tamil Nadu, Andhra Pradesh and Karnataka. There is continuous demand of Honda Bikes in India and Honda is not able to cope the fast demand of Honda Bikes due to limited sources. According to an estimate from dealers HMSI would have been able to sale one million additional Honda Bikes if it has acquired necessary infrastructural facilities. HMSI’s Honda Activa scooter is the most demanding Honda Bikes among the demand of Honda Bikes in India. With the establishment of Honda Third New Plant the HMSI will be able to remove the constraints effecting the production of its products mainly its Activa and Honda Bikes especially 125 cc Honda CB Shine and 150 cc Honda CB Unicorn Honda Bikes in India. According to reports of HMSI, the company has already settled up its second plant in India near Tapukara in Rajasthan. This plant will start its operation from between September-October this year, thus with the joint production of earlier existing plant at Manesar in Haryana it is expected that the production will raise to 2.2 million volumes per year.

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