Honda will speed up its production of motorcycles and triple sales in India for 5 million units annually within five years. To offset the expected decline in its market share, Honda is planning to increase the production of its subsidiary Honda Motorcycle and Scooter India Pyt, which is currently about 1,55 million units annually.
The second indian factory of the company Will Begin its operations in the state of Rajasthan, in the second half of 2011, and will raise the Indian capacity of production to 2.2 million units around 2012. The company also plans to build a third factory in the state of Andhra Pradesh.
The Honda’s total investment to increase their Indian production it is estimated in about 10 billion indian rupees, or around 2.3 billion sterling pounds. As a part of the expansion planning, they also wish to open new selling stores in regional cities and rural districts.
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