Honda Sets The Ball Rolling For The Kolar Plant

Honda Motorcycle & Scooter India (HSMI) is staring at their third plant in Kolar. The Kolar plant is situated in the state of Karnataka. The Kolar plant is not too far from the major city Bangalore. So that would be another advantage for the company. The plant has been set up at a cost of around Rs. 1,000 crores.

This is the first plant of the Honda family in India. The plant consumes an area of about 3, 50,000 sq. mts. It is expected that the plant will be in the production ready state until the start of 2013. It is expected that the new plant will increase the company’s production by about 1.2 million units per year.

The plant will handle the production of both scooters and bikes. There is a vast range of production that Honda incorporates in India currently. There are three variants of scooters apart from six other types of motorcycles in the consumer sector. Apart from that, there are three superbikes in the Indian market as well in the 1000cc category.

As and when the third plant of the company gets fully operational, there will be a total production of about 4 million units per year. The plant at Manesar, Haryana has the highest production capacity of 1.6 million units. The other two plants will make up the 2.4 million production even between them. The new plant will not only help in increasing the production, but will also help in cutting down the waiting period for some vehicles.

Currently, Honda has a waiting period of around three months for models like Shine, Activa and Unicorn. By making way for the third plant, the company wants to bring down the waiting period to as low as 15 days to one month at the most. The Indian two wheeler market has a demand of 11.32 million units each year. With the company’s models like Shine, Activa and Unicorn, Honda wants to grab the lion’s share of the market. These models are some of the hot selling items currently.

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