Honda to Produce 58 Lakh Units of Scooters Annually

Honda Motorcycle and Scooter India (HMSI) is one of the leading and well-established automobile makers in the Indian market. Either if we'll talk about the four-wheeler market or two-wheeler segment, the company has positioned on the top by providing the best services and quality products to the customers. The manufacturer was having enough of the guts to introduce the Activa scooter at that time when the non-geared vehicles were struggling for their identity. And, since then, the Activa scooter has become the first choice and the most-favorite scooter among the Indians. The major quality of this scooter is that it can be ridden by every age group.

The scooter sales of Honda have increased up to 29% in the fiscal year, 2014. It's been 13 years since the scooter was launched in India, and the second generation variants of 110cc and 125cc are also following the same successful path. Hence, to meet the customers demand, the company has decided to establish the country's biggest scooter manufacturing plant in Ahmedabad, Gujarat. The upcoming manufacturing plant will be fulfilling the requirement by producing 12 Lakh units annually.

Mr. Y.S.Guleria, VP of Marketing and Sales at Honda, said, "Even as we have more than doubled our scooter capacity in India, we have not been able to match up with the demand. After 13 years of its launch, Activa continues to be on 'waiting' even as competition has multiplied ten times. Even though we raised our production with three new scooters, demand still outstrips our estimates. While scooter production has trebled in the past decade, we still have a backlog of 60,000 scooters that should multiply in the festive months ahead."

Honda alone is in the command of the Indian market by sharing more than 50% of the two-wheeler market. By setting up a new plant, the company will be targeting to produce a total of 58 Lakh units annually. The company will be investing more than 1,100 cr INR to set up the new plant and will be providing 3,000 new jobs to the youths in India.