Honda invest 2.3 billion in Indian factories

Small cc bikes to fuel parent company's growth

Honda will accelerate motorcycle production and triple sales in India to 5 million units annually in five years. To offset the expected decline in its local market share, Honda plans to boost production at subsidiary Honda Motorcycle and Scooter India Pvt. from the current 1.55 million units a year.

The firm's second factory is to begin operating in Rajasthan in the second half of 2011 and lift Honda's production capacity in India to 2.2 million units by around 2012. Plans are also in place to build a third plant in the state of Andhra Pradesh.

Honda's overall investment to increase production in India is estimated at 10 billion rupees, or roughly 2.3 billion pounds sterling. As part of the expansion plan, they also aim to open new sales locations in regional cities and rural districts.

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