Honda Motorcycle and Scooter India (HMSI) will expand its scooter production capacity by 600,000 units at its Vithalapur plant in Gujarat. The increase in production capacity has occurred as manufacturers are looking to meet new demand in export markets. Honda currently ships its two-wheelers to 38 countries, which will increase to a staggering 58 countries by the 2023-24 financial year.
The production strategy is being realigned to meet this new demand with a new assembly line at the Vithalapur plant. On the sidelines of its India EV strategy announcement, Honda announced that the company has expanded its footprint in the Oceania region, starting exports to Australia and New Zealand, as well as powertrains from HMSI’s Gujarat plant to global markets.
Also read: Honda to launch 2 electric two-wheelers with swappable batteries in India by FY2024
Honda H’ness CB350 rolled off the assembly line at Manesar factory (pictures are for reference only)
Honda is eyeing its Indian business, which has huge export potential, and will increase exports from the current 18 models to 20 by the end of the next fiscal year. The move also signals the brand will continue to focus on its gasoline-powered products, which will continue to drive the bulk of its sales going forward. Honda previously announced that it aims to derive 15 percent of its sales from electric vehicles by 2030.
It’s also worth noting that Honda plans to update its existing model range to OBD2 compliance in a staggered fashion. All Honda two-wheelers will be OBD2 compliant and E20 ready by September this year, while only a few models are currently compatible. This includes the Honda Activa 6G, Activa 125 and CB350 series. We hope to see a timely update on the full series soon.
In addition, the company will continue to develop flex-fuel technologies for India, learning from its Brazilian counterparts. The company plans to launch a new flexible-fuel two-wheeler in the near future. Meanwhile, a new 350 cc product is also coming this year at Diwali. Rumors have it that the Japanese manufacturer will launch a 350 ADV, which could be just what the two-wheeler giant is offering.
First published date: March 29, 2023 at 19:09 PM CST
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