Honda begins local production of high-capacity engines

The Honda CB500X, CBR650R, and CB650R may see a price cut, as Honda Two-wheelers India has commenced local production of its high-capacity engines at its Vithalapur facility in Gujarat.

Honda Two-wheelers India has commenced manufacturing its 250cc and above engines for its global markets, namely Thailand, US, Canada, Europe, Japan, Australia, and Gulf nations, among others. With an investment of over Rs 135 crore, the manufacturing process has already commenced at Honda’s facility in Vithalapur in Ahmedabad district, Gujarat.

While Honda India is tight-lipped about the specific engines the firm will export, we suspect that they include the 250cc and 300cc single-cylinder, 500cc parallel-twin, and 650cc in-line four. A total of 50,000 engine units are scheduled for production in the first year.

The local manufacturing of these engines may help the Japanese giant to reduce the prices of a few of its motorcycles. For instance, the Honda CB500 X, which is priced at Rs 6.88 lakh (ex-showroom), is substantially expensive than most of its rivals. Despite the motorcycle being an impressive product, the value proposition of the CB500X goes for a toss with such a high sticker price. This may change as the CB500X’s engine could be manufactured locally, resulting in a price drop.

The Honda CBR650R and the Honda CB650R, which are priced at Rs 8.89 lakh and Rs 8.67 lakh (ex-showroom), respectively, may also see a price cut.

Recently, the 2022 Honda CB300R was showcased at the India Bike Week 2021. The motorcycle is expected to be launched in the month of January. The 2022 CB300R is likely to be launched with an aggressive price tag, as Honda may locally produce its most components.

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