With the addition of a fourth production line, Honda Motorcycle & Scooter India Pvt Ltd (HMSI) announced a major expansion at its Vithalapur facility in Gujarat, increasing its capacity by 650,000 units per year.
The new line, which is anticipated to begin production in 2027, will raise the Ahmedabad-based facility's annual capacity to 2.61 million units, making it Honda's largest motorcycle assembly plant worldwide.
The project, which will concentrate on 125cc class motorcycles, would receive a Rs.9.2 billion investment from HMSI.
Additionally, 1,800 jobs are anticipated to be created in the area by the expansion.
“Honda has long been investing and expanding its production capacity in India, the world’s largest motorcycle market, to bring joy to its customers,” said Tsutsumu Otani, President & CEO of HMSI.
“With the additional investment in our fourth plant, Honda will continue to deliver attractive products and services... and further solidify its Indian motorcycle business.”
With a 600,000 unit capacity when it started operations in February 2016, the fourth plant has already expanded twice, reaching 1.2 million units in June 2016 and 1.96 million units by January 2024 with the construction of a third line.
By FY27, HMSI's overall manufacturing capacity in India is expected to increase from the present 6.14 million units to 7 million units thanks to this expansion and other capacity improvements.
HMSI is now the second-largest participant in India's two-wheeler sector, holding a 25.37 percent market share as of FY25, up from 23.36 percent in the previous fiscal year.
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25 years after starting operations in 2001, Honda achieved a cumulative production milestone of 70 million units as of April 2025, with 5.8 million units sold in 2024, a 32 percent year-over-year increase.