Honda Motors, which is swearing by scooters in India, is setting up the world's largest scooter plant in Gujarat to roll out 12 lakh units annually and achieve leadership position in the Indian two-wheeler market, especially with a growing number of customers shifting to this unisex multi-utility mode that has caught the fancy of many and outpaced almost every other segment.
Scooter sales have jumped by 29% in the ongoing fiscal, and now form 27% of the total two-wheeler market from just 8% a decade back. The ever-rising demand for scooters that has far outstripped supply 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.
The company, which leads the scooter market with a 53% share in the domestic market, would have two assembly lines for scooters, which would create 3,000 more jobs. The fourth plant would enhance its cumulative production capacity in India to 58 lakh units by 2015-16, including 16 lakh from its first plant in Haryana, 12 lakh from the one in Rajasthan, and 18 lakh from the Karnataka plant.
The sales from its Indian subsidiary have already climbed to the second spot for Honda's two-wheeler business worldwide, and it believes that the fourth plant would help India become its top global market. Honda's decision for a dedicated scooter plant is backed by an overwhelming response to its five scooter brands which have been runaway successes in India.
Scooter sales have jumped by 29% in the ongoing fiscal, and now form 27% of the total two-wheeler market from just 8% a decade back. The ever-rising demand for scooters that has far outstripped supply 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.
The company, which leads the scooter market with a 53% share in the domestic market, would have two assembly lines for scooters, which would create 3,000 more jobs. The fourth plant would enhance its cumulative production capacity in India to 58 lakh units by 2015-16, including 16 lakh from its first plant in Haryana, 12 lakh from the one in Rajasthan, and 18 lakh from the Karnataka plant.
The sales from its Indian subsidiary have already climbed to the second spot for Honda's two-wheeler business worldwide, and it believes that the fourth plant would help India become its top global market. Honda's decision for a dedicated scooter plant is backed by an overwhelming response to its five scooter brands which have been runaway successes in India.
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