Honda to Expand Annual two-wheeler Production Capacity in India through Expansion of Second Plant and Construction of Third Plant

Tapukara, June 1,2011- Honda Motorcycle & Scooter India (Pvt.) Ltd. (HMSI), Honda’s wholly-owned two-wheeler production and sales subsidiary in India, announced plans to expand production capacity of its second two-wheeler production plant, which is currently under construction, and to build a third two-wheeler production plant to meet increasing demand in the rapidly growing two-wheeler market in India.

The second plant at the Tapukara Industrial Area of Rajasthan, which is approximately 90km from the center of Delhi, is scheduled to become operational in July 2011 with annual production capacity of 0.6 million units. HMSI aims to double the annual production capacity of this plant to 1.2 million units in March 2012.

Utilizing production technologies refined at the first plant as a starting point, HMSI will strive to improve process ergonomics and employ more advanced automation and other measures to reduce the burden on associates at the second plant. It will also be more environmentally responsible plant by pro-actively reducing energy consumption during production and by employing other environmental measures such as water recycling.

In order to realize Honda’s vision to provide good products with speed and affordability, the third plant will be built in Bangalore area in the southern part of India. This will enable HMSI to serve the vast two-wheeler market of India more efficiently, together with the first and second plants in northern India. The third plant is scheduled to become operational in the first half of 2013, with annual production capacity of 1.2 million units.

This capacity expansion plan will increase HMSI’s total annual production capacity to 4 million units, including 1.6 million units at the first plant, 1.2 million units at the second plant and 1.2 million units at the third plant, preparing HMSI for further and rapid growth of the market.

India represents the world’s second largest two-wheeler market behind only China, and industry-wide motorcycle sales in India for 2010 reached 11.32 million units (up 30% compared to 2009). HMSI was established as a wholly-owned two-wheeler production and sales subsidiary of Honda in 1999 and began production in 2001. HMSI’s sales have grown steadily with sales of approximately 1.526 million units in the last financial year 2010-11 (up 40% compared to FY ’09-10) achieving a record high for ten consecutive years.

In order to fulfill the diversifying needs of customers in the rapidly growing market of India, HMSI is enhancing its product lineup with CB Unicorn Dazzler in 150cc segment and CB Twister in the 110cc motorcycle segment that were targeted toward young consumers, and by recently introducing CBR 250R, HMSI’s first 250cc global sports bike. HMSI will continue fulfilling the expectations of its customers by enhancing its product lineup and expanding the production capacity.

HMSI annual production capacity

About HMSI plants

About Honda Motorcycle & Scooter India (Pvt.) Ltd.

* IMT = Industrial Model Township