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Tuesday, October 11, 2011

Honda Starts Building Third Two-Wheeler Plant in India

By: Nikhil Gulati
Source: http://online.wsj.com

NEW DELHI – Honda Motor Co.'s India two-wheeler unit Thursday started construction of its third factory, near Bangalore in southern India's Karnataka state, where it is investing 10 billion rupees ($205 million).

Honda Motorcycle & Scooter India Pvt. Ltd. will start production at the new factory by the first half of 2013, the company said in a statement.

The plant will have a capacity of 1.2 million scooters and motorcycles a year and will employ 3,000 people, the company said.

Honda Motorcycle has a factory in Manesar in northern India's Haryana state and a second in Tapukara in the northwestern state of Rajasthan. The combined capacity of the two plants is 2.2 million units a year, which will be raised to 2.8 million units by March next year.

The third factory will raise Honda Motorcycle's overall capacity to 4.0 million two-wheelers a year.

Honda Motorcycle's move to rapidly expand production is in line with its aim to surpass Hero MotoCorp Ltd. and become India's biggest two-wheeler maker within a decade.

Source: http://online.wsj.com/article/SB10001424052970204138204576600281558394512.html

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