Honda plans to build world’s largest scooter plant in Gujarat

If a recent report from Economic Times is to be believed, Honda Motors is lining up an aggressive new strategy to strengthen its lead in the Indian scooter segment. The company, reportedly, is setting up what will be the world's largest scooter plant in Gujarat as the scooter segment continues to show constant growth in the Indian automotive space. 

Scooter sales have increased by 29 per cent in the current fiscal and command a 27 per cent share in the total two-wheeler market. Such is the demand for scooters that it has prompted Honda to set up its first dedicated scooter plant in Ahmedabad. "Even as we have more than doubled our scooter capacity in India, we have not been able to match up with the demand. After 13 years of its launch, Activa continues to be on 'waiting' even as competition has multiplied ten times," says YS Guleria, Honda VP, Marketing and Sales. 

Honda says it has increased production of its scooters and yet, demand has outstripped the company’s expectations. The company still has a backlog of around 60,000 scooters and the figure is only likely to multiply in the run-up to the festive season. Honda is said to invest around Rs 1,100 crore on the upcoming Ahmedabad facility and at the same time, expand its scooter portfolio with a range of new models.