Honda Motorcycle & Scooter India (HMSI) is expected to start production on the third line of its Gujarat Plant in the next two to three years. The company commenced the construction activity of a third line to add six lakh units per annum at its Gujarat plant to increase total capacity to 12 lakh units per annum.
Yadvinder Singh Guleria, Director - Sales & Marketing, HMSI said, “As for our new line which we had made in our fourth factory in Gujarat, we call it our third line. The construction activity and other activities went on as per schedule. However, we have put on hold the decision on when to start production at that line because the overall market has shrunk. In terms of demand, the existing lines and existing capacity are good enough to take care of the demand, which is currently in the market and in the coming next two years or so.”
He further said, "It depends on how quickly the market rebounds and the new demand shoots, green shoots visible to us. That is the only time we will decide to start production in the third line. From today's point of view, since the overall market condition is very fluid and a lot of unpredictability around, it looks like two to three years”.