HMSI (Honda Motorcycle and Scooter India), the subsidiary of the Honda Motor Company, is getting ready to set up their third facility in Andhra Pradesh.
According to a government official, the company HMSI is funding about Rs. 1,000 crore for the third two-wheeler manufacturing facility in AP.
In fact, the official shared that besides HMSI, two other companies; Camozzi the Italian industrial manufacturing firm and Hyosung Corporation the Korean power equipment maker are also looking forward to invest Rs 300 crore and Rs 450 crores, respectively in the state.
Honda will invest Rs. 1,000 crores on the production facility; however, in a phased manner wherein Rs. 500 crores will be invested in the first phase.
Currently, the HMSI has a full-fledged two-wheeler manufacturing plant at Manesar, Haryana that has a production capacity of 1.55 million units a year and has a plant coming up with an yearly production capacity of 6 lakh units at Tapukara, Rajasthan.
And the proposed third manufacturing facility in AP will be the two-wheeler major’s first plant in South India.
Honda unit in Andhra Pradesh will manufacture about 2,000 two-wheeler units a month and plans to gradually increase the production capacity.