Japan's Honda Motor Co. Ltd. is continuing a strategy to create more localized production in the markets in which it sells its two-wheelers. The company's latest factory expansions are happening in India and Argentina.
In India, Honda Motor Co. plans to invest $417 million to help Hero Honda Motors Ltd. build a new motorcycle plant near Haridwar by 2010. Honda owns 26 percent of Hero Honda.
Built in phases, the plant will have an eventual annual capacity of 1.5 million motorcycles and increase Honda's production in India to about 7 million units. Plans are to finish the first phase of construction by May. It would enable the annual production of 500,000 units.
The facility will focus on 100cc bikes.
India's motorcycle market is expected to surge from a current annual level of about 7 million units to 12 million bikes per year by 2010.
In Argentina, Honda Motor de Argentina S. A. recently opened a new motorcycle plant in Florencio Valera, Buenos Aires. The new 7,000 sq. meter plant was built on a 68,000 sq. meter lot with a capital investment of approximately $1 million. The plant has an annual production capacity of 15,000 units, with the potential to increase capacity to 45,000 units in the future with additional equipment and manpower.
Production began with the construction of the C105 Biz (Cub type), a popular model in the local market. A second model will be introduced into production in the near future. The new plant began pilot production in late June, and is already operating at a mass production level.
Honda Motor de Argentina S.A. was established in August 1978. Argentina's motorcycle market reached approximately 187,000 units in 2005, a 192 percent increase from 2004.
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