Honda is likely to add a third manufacturing line in its Gujarat plant for motorcycles. Currently, the factory only manufactures scooters in two assembly lines.
The Japanese manufacturer will take a final call in the next few weeks depending upon the needs of the market. Honda wants to become India’s number one two-wheeler manufacturer by 2020 and this plan is in line with that strategy. Currently, Hero MotoCorp holds the numero uno position, thanks to strong demand for Splendor and Passion range and also for its 125cc Glamour. Plus, Hero MotoCorp has the highest market penetration in terms of dealership counts which helps them hold the number one position.
The Japanese manufacturing is also planning to build a new greenfield plant for motorcycles if the market sees a good growth. But until then, the company will use its Gujarat plant to meet the growing demand. Honda has been very aggressive in its expansion plans. It increased its sales point from 2700 in 2014 to 5500 in just 2.5 years. Atleast 70 per cent of these new outlets have been opened in semi-urban and rural markets. Its last mass market launch, the Cliq has been designed to cater to the rural market.
