With rising fuel prices and interest rates, coupled with declining motorcycle and automobile sales, it looks like Honda could be setting up a few more shops in India. Honda is currently talking with the Governments in Gujarat and Uttarakhand about setting up two new plants.
Honda has plans to produce 10 million units in India. The new plants will produce an additional 2.5 million units annually.
Honda said that with the two new plants it will become the largest two wheel manufacturing company in India by 2020. Honda plans on building the two new plants in the next three to four years.
Rush Lane reports that the two wheel industry is expected to grow two fold in the next four years. But in India, the industry could grow four folds in that time. The Society of Indian Automobile Manufacturers (SIAM) said that the industry grew of 26% this year.
Honda has not announced any official plans, but a source close to the situation told Livemint.com:
"Honda officials... have been asked by the top management to survey potential sites in the country for setting up a new project. Gujarat has emerged as a new auto destination with companies like Ford and Peugeot deciding to set up their new plants here, and Honda was keen to know about the incentives offered to these auto companies."
Honda is looking for 250 acres of land in Gujarat. Gujarat has become the automotive hub of India. Ford, Peugeot, Maruti Suzuki, and Tata motors all have big plans in Gujarat.
