Honda Motorcycle & Scooter India (HMSI) plans to set up a new production line at its Tapukara plant in Rajasthan. This expansion will be aided with an investment of INR 15 billion, and will help increase production capacity and aid increase of demand for scooters and motorcycles in India.
HMSI has now increased its production capacity in India by adding a new line at its Tapukara plant. This will help with the growing demand for motorcycles and scooters in the country. The new production line will be set at an investment of 15 billion rupees, and will begin production of commuter motorcycles. IS located in the Alwar District, Tapukara adds to Honda’s presence in India.
Key Takeaways
- HMSI adds INR 15 billion to its Tapukara plant.
- Annual Capacity of the new line to be 6.7 lakh units
- Total capacity of Tapukara plant is now 20.1 lakh units.
- Over 2000 jobs created in Rajasthan.
- By FY 2028, Honda’s production capacity in India will be 80 lakh units.
Increasing Manufacturing Footprint
The Tapukara plant started operating in July 2011 and has seen multiple upgradations in order to match evolving market requirements and demands. Today, the plant has a production capacity of 13 lakh units per annum. With the latest investment, Honda will also purchase an additional 73,700 square meters of land to support construction of the new production line. This ensures that the plant will be able to handle production of various models with added flexibility.
With the new line, and by 2028, Tapukara will be able to produce 20 lakh two-wheelers annually, paving the way for Honda’s continued growth in the Indian mobility market. Since 2001, Honda has operated in India and has produced over 7 crore units.
Regional Development and Employment
The expansion is encouraging for the economy of the state of Rajasthan. Chief Minister Bhajan Lal Sharma mentioned that the investment also leads to greater opportunities for the state in global manufacturing. Besides the end product, the project has a significant focus on regional development. With the addition of 2,000 employees, Honda will also support the local employment market and the Alwar region’s automotive supply chain.
Mr. Tsutsumu Otani, President and CEO of HMSI, has said that the improvement of the production system allows preparation for future steps. He said, ‘The expansion development provides the ability to better respond to the customer needs’. Most of the emphasis continues to be on the construction of a dependable supply chain and the aspiration of millions of buyers in India.
Future outlook for Honda in India
Honda has four operational manufacturing plants in India. These plants have a combined production capacity of 62.5 lakh units per year. Besides the Rajasthan venture, Honda also has another fourth production line under construction at the Vithalapur plant in Gujarat, which is expected to be operational in 2027.
By the end of the 2028 financial year, all these projects combined will enable Honda to produce 80 lakh units every year in India. The scale of production reaffirms the importance of India to the brand. The company’s relentless pursuit of incorporating automation and cutting-edge technologies to boost operational efficiency underscores this.
Frequently Asked Questions
Q1: Where is the new Honda production line located?
A1: The new third production line is under construction at the Honda Motorcycle & Scooter India (HMSI) plant located in Tapukara, Alwar district, Rajasthan.
Q2: How much money is Honda putting into this expansion?
A2: Honda is planning to put approximately INR 15 billion (Rs 1,500 crore) to this particular expansion project in Rajasthan.
Q3: When is the new Tapukara production line scheduled to commence operations?
A3: The company anticipates that the third line at Tapukara plant will start operations by the year 2028.
