Honda Motorcycle is installing its second unit in Rajasthan at an investment of Rs1100crore with the annual capacity of 12lakh units. This plant, probably in Bhiwadi village, will have the blessing of the state government by means of a relief package. The plant’s initial capacity will be 6 lakhs per annum at an investment of Rs500 crore. With an additional investment of Rs600 crore the capacity will be increased, in the next phase, to 12 lakhs.
Honda’s Manesar plant has the annual capacity of 15.5 lakh units a year and in the last October it had to face the labor strike, which forced it to move out of Haryana. Thus, the company incurred a loss of Rs300 crore due to stall in the production. This Manesar plant produces Activa, Dio, Unicorn, Shine and CBF Stunner.