Honda Motorcycles planning to invest Rs 800 crore on its fourth plant in Karnataka

Honda, the Japanese biggie who is getting stronger and stronger day by day in the Indian market is all set to start some new plants and to invest heavily in order to meet the growing needs in Indian market.The Japanese two-wheeler maker Honda Motorcycle and Scooter India (HMSI) will set up its fourth plant in Karnataka at an investment of Rs 800 crore.

Honda has received necessary approvals to set up the fourth plant at Narsapur, near Bangalore. The third plant is also located at the same site and has a capacity to produce 1.8 million units. The investment for the third plant is around Rs 1,200 crore in the Government-allocated 96-acre site.



The first plant, with a capacity of 1.6 million units, is located in Manesar in Haryana and the second plant with a capacity of 1.2 million units is located in Tapukara in Rajasthan. The official said the ancillary units around the Honda plant will invest a total of Rs 1,200 crore to manufacture parts for the main unit. The Honda plant will generate jobs for around 5,000 people.

Honda was earlier looking at setting up the fourth plant in Gujarat but it eventually decided to set up the fourth plant in Karnataka itself. The State Government recently offered tax concessions to Honda for the plant, which includes 40 per cent value added tax payable by the company to the Government as interest-free loan for up to 10 years.

The cabinet has also cleared 95 per cent reimbursement of CST for a period of five years and waiver of 100 per cent of land registration cost as well. HMSI officials had earlier said that the product line-up for the Karnataka plant include, three models of automatic scooters and six motorcycles in 100 cc to 250 cc range, according to the report.