Honda setting up World’s largest scooter plant

Scooter sales in India have been increasing with very good growth figures, and the Japanese bike maker seems to be cashing in on this tremendously. Honda is the highest selling scooter brand in the country and they are very confident that they will soon take the number one position away from their long time partner Hero MotoCorp in overall bike sales. The Activa was first launched in India and it still continues to be the best selling scooter in the country, and Honda have just launched a 125cc version of their best-selling model.

To address this increase in scooter sales growth Honda is building the world's largest scooter manufacturing facility in the world. the facility is being built in Gujarat and it will have the capacity to shell out 12 lakh units a year. Scooter sales in India grew by 29 percent in the on-going fiscal year. Honda will spend approximately Rs 1,100 crore on the new plant in Ahmedabad, and expand its range with a few more offerings.

YS Guleria, Honda VP for marketing and sales in India,said, "Even though we raised our production with three new scooters, demand still outstrips our estimates. While scooter production has trebled in the past decade, we still have a backlog of 60,000 scooters that should multiply in the festive months ahead."