Honda to Invest RS 920 Crore in Gujarat Plant Expansion by 2027

Honda Motorcycle & Scooter India (HMSI) announced a Rs 920 crore investment to establish a fourth production line at its Vithalapur plant in Gujarat, set to commence operations by 2027. This expansion will make the facility Honda’s largest motorcycle assembly plant globally, boosting its annual production capacity by 650,000 units to a total of 2.61 million units. The new line will focus on producing 125cc motorcycles, catering to both domestic and export markets across 62 countries.

This expansion is great news for Gujarat, creating 1,800 new jobs and giving the local economy a nice boost. With this upgrade, HMSI’s four plants across India—in Manesar (Haryana), Tapukara (Rajasthan), Narsapura (Karnataka), and Vithalapur—will together churn out around 7 million units annually by 2027, up from 6.14 million. That cements India’s role as a major hub for Honda’s global business.

Key Highlights:

• Honda to invest Rs 920 crore in Gujarat plant, adding 1,800 jobs and expanding capacity by 6.5 lakh units
• Honda’s Vithalapur facility to become world’s largest bike plant with 125cc production boost by 2027
• India powers Honda’s global two-wheeler push as Gujarat plant expansion strengthens export game

The timing couldn’t be better, with India’s two-wheeler market on fire. Strong monsoons, better tax breaks, and lower interest rates are set to drive more sales, especially in rural areas. HMSI, which marked 70 million units produced in April 2025, is pushing to stay ahead of rivals like Hero MotoCorp, which saw a 6% profit rise to Rs 1,081 crore in the last quarter of 2024-25.

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The Vithalapur plant already makes crowd-favorite scooters like Activa and Dio, plus engines for bigger 250cc-plus bikes sold worldwide. This expansion shows Honda’s excitement about India’s two-wheeler boom and its ambition to lead the global scooter wave.