Honda Motorcycle and Scooter India (HMSI) has increased its two-wheeler production capacity by 15 per cent to 46 lakh units.

Yoshiyuki Matsumoto, Managing Officer, Honda Motor Company told reporters that that the company’s new plant in Narsapur in Karnataka will have a 12 lakh units production capacity in Phase I. The plant was inaugurated on Tuesday. Phase two will have a capacity of 6 lakh units per year and will come on stream next year.

With the addition of the Narsapur plant, Honda will have a total of three plants including Manesar (Haryana) and Tapukara (Rajasthan).

The Narsapur plant will produce Dream Yuga motor cycles and Activa scooters. The plant will employ about 4,500 people and the total investment in the plant is about Rs 1,350 crore.

Matsumoto said India has overtaken China to become the world’s highest two-wheeler market. India accounts for 25 per cent of global two-wheeler sales.

Yadvinder Singh Guleria, Vice-President, Sales and Marketing, said during the last financial year, the company notched up sales of 27.54 lakh units, 31 per cent higher that the previous year. Its total market share in the two-wheeler segment is about 17 per cent. The company expects to sell over 39 lakh units this fiscal.

anil.u@thehindu.co.in