Honda to set up second two-wheeler unit in Rajasthan

Honda Motorcycle & Scooters will set up its second plant near Bhiwadi in Rajasthan with an initial capacity of six lakh units per annum in the first phase with an investment of Rs500 crore

Japanese automaker Honda Motor Co Ltd's unit Honda Motorcycle & Scooter India Pvt Ltd (HMSI), will set up its second plant in Rajasthan at an investment of Rs1,100 crore with an installed capacity to produce 12 lakh units per annum, reports PTI.

"Keeping in view the economic and financial environment of the state, the Cabinet has granted its approval for granting a customised package to the company (HMSI)," a top government official said.

The bhoomi poojan and construction work is likely to begin this month itself, the official added.

While HMSI officials were not available to confirm the development, the Rajasthan government official said that the company will set up the plant near Bhiwadi with an initial capacity of six lakh units per annum in the first phase at an investment of Rs500 crore over a five-year period.

The company intends to ramp up the capacity to 12 lakh units per annum, which could entail an additional investment of Rs600 crore in the second phase, the official added.

HMSI currently manufactures two-wheelers at Manesar in Haryana with a capacity of 15.5 lakh units per annum.

Last year, it had threatened to move out of Haryana due to a labour strike, which resulted in losses of over Rs300 crore as production came down by almost 50% due a go-slow agitation by its factory employees during August and October.

The company produces scooters ‘Activa’ and ‘Dio’ along with motorbikes ‘Unicorn’, ‘Shine’ and ‘CBF Stunner’ at its Manesar plant.
 

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