Honda to Boost Scooter Output in India

Economy

Tokyo, Oct. 5 (Jiji Press)--Honda Motor Co. <7267> is set to boost its motorcycle production capacity in India in response to growing demand for scooters in the South Asian country.

The Japanese company said Thursday that by 2020, it will increase the annual capacity at subsidiary Honda Motorcycle & Scooter India Pvt. Ltd. to seven million units from 6.4 million units at present.

A new line will be added to one of the subsidiary's four plants at an investment of some 6.3 billion rupees. The plant will manufacture 600,000 more units a year, including the Activa, a 110 cc scooter launched in the Indian market in spring this year.

Aiming to put the new line into action in fiscal 2020, the unit will hire an additional 1,500 employees.

India's motorcycle market reached some 20 million units in 2017, with Honda having a share of about 30 pct.

[Copyright The Jiji Press, Ltd.]

Jiji Press