Honda Motorcycle & Scooter India (HMSI) will invest Rs 920 crore to add a fourth production line at its Vithalapur plant in Gujarat, the company said on Thursday. The move aims to meet rising demand in the world’s largest two-wheeler market.

1. Fourth production line to be added to the Vithalapur plant
2. Aims to increase production to 7 million units by 2027

Honda’s plant expansion

The company recently celebrated a global milestone of producing 500 million two-wheelers.

HMSI currently operates four manufacturing facilities in India – Manesar in Haryana (38,000 units), Tapukara in Rajasthan (1.3 million units), Narasipura in Karnataka (2.5 million units), and Vithalapur in Gujarat (1.96 million units) – with a total capacity of 6.14 million units. The additional fourth line at the Vithalapur facility will add 6,50,000 units to its annual production capacity, increasing the plant’s total output to 2.61 million units. With this expansion, HMSI’s total production capacity across India will rise to approximately 7 million units by 2027. This new line will make it one of the largest two-wheeler manufacturing sites globally, HMSI said.

Meanwhile, Honda also plans to set up a new plant dedicated to electric vehicles within the premises of its existing facility there, which is expected to become operational in 2028. The Japanese company is looking at India as an export base for global markets and plans to launch at least one electric model globally every year.

HMSI’s CEO, Tsutsumu Otani, emphasised the investment’s role in supporting India’s growing market and expanding exports to over 62 countries, including those in Central and South America. The expansion will also create 1,800 jobs, supporting local economic growth. HMSI recently celebrated its 25th year in India and a local milestone of 70 million two-wheelers produced. The company, known for its ICE vehicles, reiterated its commitment to carbon neutrality by 2050 and zero traffic-related pollution for its motorcycles and cars globally by the same year.

Honda Motorcycle & Scooter India’s expansion

The company first established itself in India back in 1999

The expansion has to be seen in the context of HMSI’s stated ambition to replace Hero MotoCorp as India’s largest two-wheeler maker. Since their split in 2011, Hero has dominated motorcycle sales in India, particularly in rural markets with models like the Splendor, while HMSI leads the scooter segment with Activa, holding over 60 percent market share.

HMSI, currently the second-largest two-wheeler manufacturer with a share of around 26 percent in the domestic market, has set its sights on becoming the number one player in India, outpacing Hero MotoCorp. The company has seen robust growth in volumes in recent years, driven by strong demand for scooters and 125-150cc motorcycles. Over the past couple of years, Honda has significantly reduced the volume gap with its erstwhile partner, Hero MotoCorp.

In the domestic market, Honda has aggressively grown its volume from 3.87 million units in 2020-21 to 5.33 million units in 2024-25. The automaker exported around 5 lakh units in the last financial year. For FY26, the company is targeting 6.26 million units, up from 5.86 million in FY25, representing a 7 percent year-on-year increase. It also aims to grow exports by double digits to 5.6 lakh units, compared to the 5.05 lakh units shipped in FY24 – reinforcing India’s growing role as an export hub.

With inputs from KETAN THAKKAR