Honda Motorcycle Invests ₹920 Crore, Adds New Production Line In India

Honda Motorcycle & Scooter India (HMSI) has announced plans to establish a fourth manufacturing line at its Vithalapur facility in Ahmedabad, Gujarat, says a report by ET Auto. This is a significant expansion of the company's production capabilities in the region. The new production facility, scheduled to commence operations in 2027, will increase the plant's overall annual manufacturing capacity to 2.61 million units, positioning it as Honda's largest motorcycle production facility globally.

The expansion project represents a ₹920 crore capital investment and is expected to generate employment opportunities for 1,800. The facility will specialise in producing 125cc motorcycles to meet increasing demand in both domestic and export markets.

This comes days after the company, at its annual business briefing, revealed its future plans for the next five years. It said electric two-wheelers will continue to be one of its prime pursuits, and added that Honda’s dedicated EV manufacturing plant in India will drive production primarily.

Upon completion, Honda's combined annual production capacity across its four Indian manufacturing facilities will expand from the current 6.14 million units to approximately 7 million units by 2027.

"Honda continues to invest in India, the world's largest motorcycle market, to meet rising customer expectations and deliver globally trusted products," Tsutsumu Otani, President and CEO of HMSI, was quoted as saying in the report.

Recent performance data shows the company achieved total sales of 4,80,896 units in April 2025, comprising 4,22,931 units in domestic sales and 57,965 units in exports.

India plays a crucial role in Honda's worldwide expansion strategy and electric vehicle initiatives. The company has set ambitious targets to reach 6.26 million units in sales for FY26, representing a 7 per cent increase from the 5.86 million units recorded in FY25.