Honda has announced that it intends to build a second production plant in India in order to meet the rising demand in the world’s second largest motorcycle market. Located in western Rajasthan, the production facility will cost Honda over $100 million, but will also allow the Japanese firm to churn out an additional 600,000 units per year starting in the second half of 2011.
This new facility in western Rajasthan is just one element in Honda’s plan to increase Indian production. Honda also expects to increase production at its Haryana plant in northern India from 1.25 million units to 1.55 million unit by the end of March, with a final goal of 1.6 million units by 2011.
This production along with the Rajasthan plant will bring Honda’s total production in India up to over 2 million units, if that gives you any idea how big the Indian motorcycle market is. Sales in India were up 19% in 2009 (9 million total units sold), despite being down elsewhere in the world. Compare that to China’s 15 million units in 2009.