There is no doubt about the fact that Honda Two Wheelers India is the undisputed leader when it comes to the market share of scooters in India, with having a huge 58 per cent market share, HMSI is actually having more of demand than it can supply. And to correct that, it has opened a new assembly line for the Activa 3G at its ‘Scooter Only’ plant in Vithalapur, near Ahmedabad, Gujarat. The new assembly line is capable of manufacturing 6 lakh scooters in a year at full capacity and has taken the overall production of the plant to 12 lakh units a year. The new assembly line is 156 metres in length, with 51 metres being the length of the engine assembly and 105 metres being the length of the scooter assembly. At present, the total production capacity of Honda Two Wheelers stands at 58 lakh units a year from all four of its manufacturing facilities in India at Haryana (16 lakh units), Rajasthan (12 lakh units), Karnataka (18 lakh units) and now Gujarat (12 lakh units).
Honda Two Wheelers is now looking at increasing its share in the scooter space even more before the festival period sets in from October. The company also pointed out that the scooter segment in India is growing at a rate of 30 per cent, which is twice the growth rate of the two-wheeler segment as a whole. A fact very well demonstrated by the Honda Activa, which became India’s largest selling two-wheeler in India, usurping Hero Splendor from its 17 year reign.
Honda Two Wheelers has invested 1,100 Crore in the Gujarat plant and has 3,000 employees working there. The 23 vendors for Honda Two Wheelers have invested another 1,100 Crore in their various facilities.