Honda Plans To Add Motorcycle Assembly Line At Gujarat Plant

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The new line will help Honda achieve its goal of beating Hero MotoCorp by the year 2020

Honda two-wheelers India may soon add a motorcycle assembly line at its Gujarat production facility. Currently, the said factory has two assembly lines for the production of scooters only. For those not in the know, Honda aims to become the largest two-wheeler manufacturer by the year 2020 and beat its former partner Hero MotoCorp. The adding up of new motorcycle line is a part of the said strategy only.

Honda is expected to do this task in the coming weeks. The existing two assembly lines at Honda’s Gujarat plant produce 12 lakh units annually and are currently operating at their full capacities. Also, out of the four factories that Honda has in India right now, it is only the Gujarat one that can accommodate an additional assembly line.

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Besides, there have been reports suggesting that Honda might also bring up a greenfield factory that will be exclusive for motorcycles. The company will do this in case it sees potential numbers for motorcycles in the times to come.

Honda Motorcycle and Scooter India (HMSI) is currently the leader in 125cc motorcycle segment with its Shine model. The company is busy acknowledging the potential of scooter as well as bike segment. The brand has a total market share of 17 percent in the motorcycle segment while in the scooter segment, it has a chunky 59 percent portion.

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To meet its goal of beating Hero MotoCorp, Honda has been working quite aggressively. The company has ramped up its total number of sales points from 2700 in 2014 to 5500 till now. Out of these outlets, close to 70 percent have been opened in rural and semi urban areas.

On the parallel, looks like Hero MotoCorp is in no mood to let go of the throne that it has captured from last so many years. The company has a lot of products lined up for future including some big capacity bikes.