Reports say that Japanese auto major Honda Motor Co, will commence exporting bikes by next year from India, a country which it sees as a future global hub, particularly for mass market models. India has always been the market for most of the big company's mass market products. Following the path, Honda, who realised this fact, has started considering India as a global hub for their future projects.
For a company like Honda, who has got good brand reputation among its customers and the citizens on a larger scale, India is indeed a market with great future potential with the growing economy of India and increase in disposable income level. Apart from merely exporting a few models from its plants in India, Honda is also considering the idea of building a global procurement centre for large sized motorcycles.
Earlier some of the motorcycle models were being produced by Hero. Now Honda is looking forward to do it themselves by 2012 from the new plant. Eventhough Honda split up with its 26 year old partner Hero, the technology sharing agreement between these two majors is still valid till 2014, though not much of it is made use by Hero Group.
HMSI has two plants in India presently with a total manufacturing capacity of around 22 lakh units per year. The company is currently involved in the process of setting up its third plant on the outskirts of Bengaluru. With the completion of this plant, the manufacturing capacity would go up to 40 lakh units per year by the first half of the year 2013.
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