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Honda to increase its capacity in world’s second-largest bike market

Honda’s subsidiary in India says the company will build a second production plant there to meet increasing demand.

The new plant is scheduled to become operational in the latter half of 2011 with annual production capacity of 600,000 units, according to a press release. Honda also said it is expanding capacity of its existing plant from the current 1.25 million units to 1.55 million units by the end of this month, with a further expansion to 1.6 million units scheduled for next year.

India represents the world’s second-largest motorcycle market behind only China, and industry-wide motorcycle sales in India last year reached 8.7 million units, up 19 percent compared to 2008.

The new plant, which will cost $97 million, will employ approximately 2,000, the release stated.

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