Thursday, June 2, 2011

Honda plans its next plant in Karnataka

Auto Manufacturing could get a boost in Karnataka as Honda Motorcycles and Scooters India may set up a manufacturing plant at a location close to the IT capital of India, Bangalore.  For the Southern state primarily known for the IT sector mainly concentrated in and around it’s capital, this bit of news could come as a welcome break as investments in the auto manufacturing space have been few and far in between, with most automakers preferring the neighboring state Tamil Nadu, for their investments.

According to sources in the know about this project, Honda’s two wheeler manufacturing unit in Karnataka could entail an investment of close to INR 1,000 crores. Also, a large number of jobs are expected to be created with the setting up of the manufacturing plant which would definitely boost the local economy. Honda, it seems is on a rapid expansionist spree with it’s second Indian plant at Rajasthan all set to go on stream on the 1st of June.

Silver Colour Honda CBR250R

Honda has been making no bones about the fact that it wants to be the top player in the Indian two wheeler market in the times to come and having exited it’s long time joint venture with the Hero group, Honda seems to be all set to work towards furthering it’s goal of being numero uno in India. So, the third plant being planned comes as no surprise although most two wheeler industry analysts estimated the third plant sometime in 2015-16.

As a prospective Honda two wheeler buyer, you can expect waiting times to go down if Honda’s expansion plans work according to plan and also the spare parts situation improve. Currently, Honda Activa buyers are havingto wait for 2-4 months for delivery even as we’re hearing many harried customers of the Honda CB Twister complaining about lack of spare parts, especially in times after a accident. Hopefully, Honda will be able to address these issues on a war footing once it’s production expansion begins.

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