NEW DELHI: Honda Motorcyle and Scooter India (HMSI), a wholly-owned subsidiary of Japanese automaker Honda Motor Co. on Wednesday said that it is likely to build a new two wheeler plant in Indian state of Rajasthan. For the new plant, the company will invest about Rs 500 crore ($110 million).
Naresh Kumar Rattan, general manager of HMSI and operating head of sales and marketing, revealed that the annual capacity of new plant will be of 6,00,000 scooters and motorcycles. The new plant will take the HMSI’s total capacity to 2.2 million.
While addressing an event on Wednesday, Rattan also said that HMSI will also launch at least six new motorcycles in the Indian market in 2011. The first of which is the CBR 250R, which will be introduced in April.
As per the available data, the current facility of HMSI in Haryana state has peak capacity of 1.6 million scooters and motorcyles, which is almost close to operating at full capacity.
Hero HondaMeanwhile, India’s Hero group and Honda Motor have formally announced to terminate the 26-year-old relationship due to unresolved differences and ambitious independent plans. According to the deal, Honda will sell its 26% stake to the Munjal family.
As per the sources close to the development, Japanese auto major will exit the JV through a series of offmarket transactions by giving the Munjal family 26% stake. Munjal family currently holds 26% stake in the company. The stake is likely to be sold for $1-1.5 billion.
Sources revealed that the Honda Motor Company board is likely to issue a statement to the Japanese stock exchange Nikkei soon. The board has agreed to terms of deal in Japan. The brand name ‘Hero Honda’ is likely to stay till the technology pact ends in 2014.
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