Honda lines up Rs300 crore for India

Honda lines up Rs300 crore for India

New Delhi: Japan’s Honda Motor Co.’s Indian two-wheeler unit will invest Rs300 crore in its plant over the next three years, and launch two new models in calendar year 2008, a top official said on Monday.

“The investment is for new models and for capacity expansion at the Manesar plant," Shinji Aoyama, chief executive officer of Honda Motorcycle and Scooter India Pvt. Ltd, said. Honda’s Indian plant is in Manesar in Haryana, where it produces three scooter models and two motorbike models.

Aoyama said Honda would launch a “premium" scooter during the Auto Expo in New Delhi in January and a motorcycle in the first half of 2008-09. He declined toprovide details about the two models.

Honda plans to launch a 100 cc motorbike within the next 36 months, he said. Over the next three years, Honda will launch up to five new scooter and motorbike models in India, he added.

In 2007-08, Honda expects to sell 888,000 units, going up to one million in 2008-09, Aoyama said. Honda sold 715,000 units in 2006-07.

“In 2010, we will expand capacity to 1.2 million unitsand sell 1.2 million units," Aoyama said.

He said a decision on opening a second plant in India would be taken by 2009.